Tuesday, August 3, 2010
Since we are looking at ISM and base metals... Cu
This would be accompanied by newly brave bull touts flaunting the global growth story, but you know it would simply be the results of monetary wizardry and the dawn of a new and possibly jaw-dropping upward price cycle AKA the effects of the inflation (inflate or die) promoted actively as policy for years.
In this scenario, there will be many heroes; first and foremost the resource and commodity bulls who have held firm in the knowledge that they will eventually be right - with the only question being are they going to lead their followers on a gut wrenching deflationary round-trip first? Then, every manner of bull wise guy will come out of the woodwork, pretend this is something healthy and instruct their herds as to how to play it.
Just how do you play a ramp toward hyperinflation anyway? I guess if you are me (the company owner), you buy a lot of aluminum and inventory it for the next year. If you are me (the investor), you ramp up the emerging productive market speculation, sleep soundly with precious metals (but trade the hell out of the miners) and you process the lies that will come out of officialdom as to what we actually have here.
Or... copper could just fail at resistance. ;-)