I remember the good old days of 2007, when oil was going to $500, copper and gold to Pluto, and cotton would get so expensive–people would resort of traveling around naked or in burlap bags.
Over the past year, the sector has been decimated–Great Depression style. These are the sort of moves one would expect during a depression.
Coal -53%
Natty -45%
Oil -42%
Yet my electricity bill is still $600 per mo. How the fuck does that work?
Coffee, Copper and Palladium all down more than 30% for the year.
Over the past two years, oil, natty and coal are down upwards of 60%.
Stocks have faired much worse, with 90% losses in BTU, 85% losses in ZINC. FCX, CLF, X, UPL and CHK have declined upwards of 70% in 2015.
Some argue that the drop in commodities is a good thing, as it saves the consumer money, to be spent elsewhere. But that’s horseshit, since retail numbers are abysmal and haven’t moved all year. So where is the extra savings going?
Is everything just going to Apple and Amazon?
Last year was a horrid year for commodities. Had you bought that dip, thinking 2015 would recover, you got your face eaten off for you, Miami Zombie style.
Stocks are mixed, early going. However, my stocks ae doing well, with gains in SHAK, PAH, FCX and VRX. Also, I am quite pleased that I sold COST last week.
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Once rates start going up the commodities should too (also?).
The markets have factored this in and the first rate will see a spike up in mining stocks.
Production has been slashed all over the place and thus supply (gold, silver, copper, platinum, etc. although not oil yet).
In other words, GDX,GDXJ (gold mining etfs) should be bought over time beginning now.
Bold call coming from the SMH trader.
Dr. Fly – I had to check my electric bill – last month’s was 10% of what yours is. Maybe you should consider a move out west?
My average bill is 30% (including winter months) of Fly’s and I live in Florida on about 3,000 sq. feet with a pool pump going on average 8 hours a day.
I do believe he needs to have a discussion with Mrs. Fly and lil’ Flys about this matter.
TC – $60 is an unusually low bill for me. It had some of October in it, which usually requires neither AC or heat, down here in the desert. Just planting a seed with the good doctor. I’m also an excellent babysitter…
I don’t do the bills and really don’t know how it’s so high. I do not live in a castle. MAybe my neighbors are siphoning off me.
My tell: commodity pain not over until there are some bankruptcies.
Savings from lower commodities going into rent and healthcare IMO.
On a lighter note Martin Shkreli is the one who bought the million-dollar Wu-Tang album titled “Once Upon A Time In Shaolin”….maybe you should make a list of artists that should make one of a kind albums for you to salve the commodity burn.