Leon Tuey for The Gold Report - Wed, Mar 2, 2016

Commodities: Early Signs of Bottoming

Veteran investor Leon Tuey says he believes, contrary to conventional wisdom, the economy is not heading into recession and commodities are showing early signs of bottoming.

Reuters/Jeffries CRB Index, Quarterly Chart

Among endless concerns, one of the major worries for investors is that the world is about to slide into a recession. As always, they find arguments to support their own biases. They point to China which is leading the world to the Hades, plunging commodity prices, the strong U.S. dollar, earnings contraction, negative interest rates, Brexit, etc. Also, they argue that despite years of monetary easing, the recovery has been lackluster at best. They conclude, therefore, "the central bank is running out of ammunition." How ignorant and how na´ve!

If the merchants of doom stop flapping their gums and "listen" to the market, they would be far more upbeat on the economy. This year, Copper, Lumber, and Oil are showing signs of bottoming. Moreover, Transportation, Basic material, Consumer, and Industrial issues have outperformed the S&P. If a recession is looming, why would the economy-sensitive sectors show positive relative strength? Two months are already gone and only ten months are left in 2016. When is the recession?

Please look at the following charts and comments closely and the conclusion is clear. The economy is not heading into a recession. Moreover, global growth, particularly the U.S., will prove better than most think. When investors, sitting on a mountain of cash, come to their senses, the market will explode on the upside. In fact, I believe the market has already bottomed and the bull market has resumed.

Subscribe to The Gold Report if you would like them to email you the remainder of the article and charts.

Leon Tuey is a veteran technical analyst.

This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment.

From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

All images/charts courtesy of Leon Tuey

InvestorsGuru.com publishes interesting contributor articles in addition to its own content. We have not verified any of the above details.

Sign-up at InvestorsGuru.com (or blog.InvestorsGuru.com) for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or to post at our AnyTicker.com Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from InvestorsGuru.com is subject to the terms of our Privacy Policy and Disclaimer.

comments powered by Disqus

Detailed Quote Portal

symbol lookup | (TSX add :ca)

Membership Privileges

  • Investors Guru Small Cap Stock Observer - newsletter emailed monthly!
  • Featured Stock Profiles - emailed on occasion!
  • News by Email - as it's released, according to your My Preferences!
  • My Portfolio - login to view or update your holdings, or have it emailed daily!
  • My Watchlist & Alerts - login to view or update your stock radar list, and set price triggers for email alerts!
  • Bulletin Boards - no need to request boards, just Quote it! Social Sign-on & Share your ideas, observations & trends!
  • Find it all! Find it Fast! Comprehensive stock research webpages. No more endless clicking!

Email: (see Privacy Policy)
Password: (4-15 characters)
Username: (4-15, BB posts etc)

unsubscribe anytime

Bookmark and Share

 Subscribe in a reader

Our Mobile Site