Ross Naylor +48 (22) 389 65 70 (w) +48 512 275 706 (m) ul. Królewska 27 lok 411 Warszawa 00-060 PolandIs the Commodity RallyReally Over or is GoldmanSachs Simply Doing What itDoes Best? For a long time Goldman Sachs New Scams to has been cheerleader in chief Look Out For for the commodity A combination of low interest bulls. rates and high inflation is forcing investors seeking Then out of the higher yields into the arms of blue, a couple of fraudsters.weeks ago, they come out and say that the party is over(see article). The City of London police and the UK Financial ServicesNow if I were wearing my paranoi d Goldman hater hat, I Authority have warnedwould think that they were simply trying to convince investors to be on their guardeveryone to sell their commodity holdings so that they as boiler room outfits arecould then buy them up at a c heaper price and make a using new tactics.killing. One of the newest tricksHowever, while having a degree of scepticism towards involves using genuineanything that these guys say is healthy (to be honest if financial adviser data (e.g.
they came out and sai d that grass was green I would go name and registrationto the nearest field to check), in this case I actually think number) to c heat investors, athey have a point. practice known as cloning.Firstly, let me be clear, in no way do I think that the multi- [The conclusion to thisyear commodity bull market is over. At the same time, if article can be found here.]you look at the figures below, you will see that manycommodity markets have come a long way in a fairlyshort period of time.* Brent Crude Oil +47% since 23rd November 2010* Corn +108% in last 12 months* Silver +126% since mid August 2010* Cotton +145% in last 12 monthsTherefore my thought s would be as follows: Did You Know?1. If you aren t already invested in commodities and are In Australia, apprenticeshipkeen to do so, wait. I suspect you will be able to buy periods have been cut from 4exposure to most commodities (see my blog post on how years to 18 months to meet theto do so here) at a better price in the not too distant increased demand for skilledfuture. workers.2. If you are invested in commodities already and have It is expected that by 2015 thebeen for some time, now would be a good time to pat country will face a shortage ofyourself on the back and bank some of your gains. roughly 36,000 workers in the mineral/petroleum resources3. If you have a long term plan, where you are dripping sector.money into the commodities markets on a regular(monthly) basis as part of your overall portfolio, stick withit. You will average out the volatility over time.And finally...I wish you a belated happy Easter. I hope that you andyours has a great w eekend.As always, thanks for reading and if you have anycomments or thoughts on this weeks issue, feel free todrop me a line. Sign Up
Ross. If you have been forwarded this ezine by someone else and wish to sign up to receive future issues automati cally, just enter your e-mail address here. Call me: +48 (22) 389 65 70 (w) +48 512 275 706 (m)