Demand for industrial commodities including oil will fall, pressuring prices, because the financial sector is in ``disarray'' and the U.S. economy will continue to slump, investor Marc Faber said.Dr Doom on oversold equities markets, commodity cycles and making money"
``The industrial-commodity complex is vulnerable because demand will slow down,'' said Faber, publisher of investment newsletter the Gloom, Boom and Doom Report. ``The economy is weakening, corporate profits will disappoint, valuations are not particularly attractive, and the financial sector that serves to channel savings into investment is in disarray.''
Demand for commodities will fall after raw materials including oil, corn, copper and gold touched record highs in the first half, Faber said in an interview on Bloomberg Television. The global economic slowdown will last a ``very long time,'' he said.
``The financial crisis has been the appetizer,'' Faber said, referring to the $400 billion in writedowns at the world's largest banks and securities firms in the past year. ``We still need the main dish.''>>>MORE
Thursday, July 3, 2008
Commodity Demand to Drop as Growth Slows, Faber