Commodities

http://www.businessspectator.com.au/bs.nsf/Article/Glencore-Glasenberg-commodity-prices-carry-trade-pd20110513-GT55H?OpenDocument&src=sph&WELCOME=AUTHENTICATED%20REMEMBER


This is what I am scared of. There is no quantitative measure, no short term predictability, no control and no logic over its price. You are most susceptible to these managers who make huge amount of money out of investors who are keen to hedge against the North American peso, i.e., the USD.

China is reining in its economy but that does not mean no growth; just slower growth so the future for Australian miners is not that gloomy. But market prices for shares are very dependent in the short term on sentiment. And these bastards who control huge amount of warehoused commodities can do tremendous damage. They make their money mostly from commission but if they trade opportunistically, they can also profit from manipulating the market.... at other investors' expense.

For me, I think it is time to start increasing my cash component. However, I am always a sucker for good bargains!