Friday, January 7, 2011

Nice piece on copper and base metals by Andy Home of Reuters

On this link is the Reuters Metals Insider for today, January 7th. On pages two and three of the PDF is an op-ed on copper and BMs by Andy Home. It's not bearish, it's not bullish, it's a balanced view of what's happening today, smart commentary from a guy that follows the sector very closely and well worth reading all of it, but as a taster here's the concluding paragraph:
"....it's not the most benign macro environment to start the New Year with.

"And if Dr Copper isn't signalling that, it's maybe because the thundering investment herd has stamped all over his glasses. Money must find a return and holding cash in most of the developed world is a non-option. A fund manager who is not in the risk asset game will return to investors no more than the loose change in his pocket.
 
That remains the true driver of this commodities bulldozer. Each commodity has its own narrative and that narrative will determine which fares best (more on which in Part 2 of this column). But the rising tide of quantitative easing is lifting all, strong and weak alike. Just remember that the problem with being in a crowded room is that you don't realise just how crowded it is until you try and get out."

DYODD, dudettes and dudes.