Ags Breaking Out

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Agriculture sector is breaking out of a nice and flat base. It looks like the inflation (or should we say “hyper-inflation”) is roaring it’s ugly head up in the face of government intervention. Take a look at some of the charts of stocks within this sector

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Comments

all these news about coming hyperinflation looks to me too obviuos. Someone really wants to persuade the crowd that it will happen tomorrow. I really doubt about it. What do we have:
-worsening economies all other the world
-drop in demand from industries and population
-massive hedge funds outflows
-decreasing income for both population and companies (consume less)
hyperinflation support:
-printing press of the Fed
I still think that the majority of that fresh money goes to banks to cover their huge holes in balances..at least now..mainly virtual money…
My conclusion:
It appears to me, that it is a deflationary round right now, so logically we should expect further drop in all asset prices. All the declining economy’s factors outwheight printing press effect. All these info about recovery is bla-bla-bla… just take a look at official figures on unemployment, sentiment, expenses etc. That’s real pro deflation factor. Hyperinflation is actual, but not now… not in this year… I would expect USD/EUR at least at 1.1 from current 1.35.. before hyper-n.
But, I can be mistaken if: all this stok market bounce was caused by fresh money just from FED… so banks can simply buy stocks and commodities.. so DOW can even reach 15000 this year..=)
Probably some hedge vs last idea would be suitable, e.g. to buy some OCT or DEC calls for DBC (general commod. index) or DBA.

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