Commodities and emerging markets

Discussion in 'General Trading Discussion' started by remnant, Apr 5, 2016.

  1. remnant

    remnant Well-Known Member

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    Given the strength of the dollar and weakness in commodities, emerging markets will have their commodity prices relatively low for the next few years. China represents over half the demand for many commodities yet it is trying to move its economy from a fixed asset base economy to a consumer economy. This means that fixed assets and therefore commodities are going to be under pressure with oversupply in many commodities. Now that commodity prices have come down, consumers have more money to spend and consumer stocks are leading the market.
     
  2. Corzhens

    Corzhens Senior Investor

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    When there is more money to be spent, the economy will perk up. Yesterday I had come across a post about the sagging price of solar energy companies. Is it because of the realization that their product is not that efficient? Or is there something wrong in the company? China is currently facing a labor problem since their factory workers have gone back to their provinces due to expensive standard of living in the factory areas. The college graduates, although jobless, wouldn't touch the factory with a ten-feet pole. So what gives?
     

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