From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Not unlike the major US equity indexes, the commodity space is still range-bound as we head into year-end.
When we compare the trailing 12-month returns of individual groups, we get a sense of how bifurcated the commodity market has been. Another thing that stands out is just how weak precious metals have been relative to their peers.
While the rest of the asset class has posted solid gains on the year, gold and silver continue to trend lower. If this is truly a commodities supercycle, we’d expect to see some participation from this group. And, considering they’ve been in a downtrend for almost 18-months now as the rest of the space has been working, we’d expect it to happen soon.
Let’s take a closer look at what’s going on with these shiny rocks. [Read more…]