Tuesday, July 7, 2009
Stick with Defensive Stocks, for now.
Miners and oil plays were among the big fallers as metal prices slipped and oil prices continue to ease back to around $62 a barrel. Deutsche Bank warned that miners were already priced for the recent recovery in metal prices. “We believe commodity prices will need to keep going up for significant rises from here.” The trouble is, we suspect the next move – in the short-term at least - will be down. With demand in the global economy still weak, it seems difficult to justify current commodity price levels, let alone even higher ones. And that means things don’t look great for the miners. On the other hand, defensive stocks were higher as investors looked for safe havens, with tobacco stocks and consumer good companies among the top gainers (excerpts from MoneyWeek).
Posted by Remnant 888 at 10:46 PM