Monday, March 3, 2008

Commodities Go Bananas

The headline is from the WSJ's MarketBeat blog.
They like to show off with highly technical jargon.
(or, er, bad, really bad plays on words)

One milestone was surpassed this morning, and the other’s eventual passage is inevitable as far as strategists can see. And while Federal Reserve officials have, by and large, been more inclined to believe inflation will recede as the economy continues to slow, it’s hard not to be sanguine about oil hitting an all-time inflation-adjusted high while the price of gold homes in on $1000 an ounce.

That’s because those commodities aren’t alone. Today, RBOC gasoline, heating oil and are all at new record highs, while other major commodities such as copper, corn, and soybeans continue their moves upward.

“The commodity space is quite firm and this is in the face of pretty lousy economic figures coming out of the US,” says Bart Melek, global commodity strategist at BMO Capital Markets....MUCH MORE