These are the picks of the day according to an article about what international investor Marc Faber is looking at. Despite the article’s bullish call on commodities, I know that Faber is on the record as saying that oil is due for a correction soon. And in Barron’s he mentioned that steel demand could slow if China is affected by a global slowdown.
So, buyer beware. I wouldn’t trust commodities to continue up, at least over the near term. One can’t trust what one reads.
That said, the most interesting comment in this short blurb was:
“For Japan, inflation is favorable,” Faber said, because it “will bring cash out of the mattress and into equities and real estate.”
For a country in the throes of deflation for a decade, a little inflation might be the fillup they need.
Source
Marc Faber Favors Commodities as Inflation Quickens, Bloomberg News, 24 Jun 2008
Troubled Waters, Barron’s, 16 Jun 2008
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Picture du Jour: Sun Rising Over Japanese Stocks, Prieur du Plessis, Safe Haven, 24 Jun 2008