commodities: this is as good as it gets

  1. 3,274 Posts.
    I realise that I'll probably be hounded down, but here goes: rising US interest rates will attract money back to the US, and the low-interest environment that has fuelled China's building boom will disappear. China will have a hard landing.

    Worldwide demand will ease, and commodity and oil prices will stall then slip backwards. Hedge funds, who have already overspeculated on commodities and oil will realise the gig is up, and start heading for the exits all at once. Hence commodity prices will crash. This will wreak havoc in particular on the Australian sharemarket, that is overexposed to commodity price fluctuations.

    As to when this will happen, that is the 64 dollar question.
 
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