Commodities casino makes losers of us all
Commentary:
Don’t count on China to keep this bubble intactBy Paul B. Farrell,
MarketWatchSAN LUIS OBISPO, Calif. (
MarketWatch) — You betting on inflation? On commodities? China? Shorting America? Warning, “the signs of a speculative top are everywhere,” says economist Gary Shilling in “Will China Burst Its Own Bubble?” his latest Forbes column.
Yes, commodities are hot, also volatile, a time bomb ready blow up your portfolio. Time to short commodities? China? Go long America? Confusing?
In fact, earlier this year more than one peaked, crashed: Cotton was well under a buck for a few years before mid-2010 when speculators began gambling big, pushing cotton above $2 a pound. Then in the last four months the cotton casino crashed, back under a buck.
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But addicts never stop. Till they lose everything. They double down, betting the market’s hot and getting hotter, like the cotton farmer. Betting inflation will push prices up, make millions, like Florida condo flippers in 2007. ............(more)
The complete piece is at:
http://www.marketwatch.com/story/commodities-casino-makes-losers-of-us-all-2011-08-02?link=home_carousel