long-term buying may not occur until 2012
LONDON (Commodity Online): A correction
lower in the broad commodities market is likely to begin
this week and a long-term buying opportunity may not
occur until sometime in the first half of 2012, said
Shawn Hackett, president of Hackett Financial Advisors.
last week’s snapback rally was due to a “temporary pause”
in the European debt crisis. Some might say “all is
clear” to hold commodities again. “I beg to differ.”
the lens I look through, most of the upside has already
been achieved and at best markets will remain stable
in a generally benign sideways pattern into the end
of the year. The eye of the hurricane seems tranquil
and filled with hope until the back side of the storm
comes out of nowhere and provides an even more lethal
blow of destruction to the downside.” He looks for markets
to reassess the European debt bailout plan.
he fears the “super debt reduction committee” in the
U.S. congress will fail to agree on necessary cuts to
maintain the country’s current debt rating.
may make “marginal new highs” by year-end followed by
a decline into the first half of 2012. This will be
the buying opportunity for long-term commodity investors
and for end users to procure long-term supply needs,”