Fast Money Circle Jerks Urging People to Buy Commodities

ByLoSellHi · May 21, 2009

Such sound advice - buy oil and other commodities based on the premise that the U.S. dollar will crash harder relative to other currencies in the coming meltdown.

/not

CNBC is like a bad stock; always reaching a new low.

When is their $o hour?

Ivanovich · May 21, 2009

I know that Fast Money is a joke, but what's wrong with this call? The feel right now is that the dollar IS crashing as the talk of a US downgrade (whether or not it is reasonable) is making the rounds. Euro at 09 highs, dollar at 09 lows vs just about everything except the yen right now...gold is close to 1000, oil is rising despite massive gorging inventories worldwide....

I'm not sure I see why you disagree with the call.

nazzdack · May 22, 2009

Quote from ByLoSellHi:
When is their $0 hour?

1) A stopped clock is "correct" twice a day.
2) Blind squirrels can occasionally find acorns.
3) If you make enough forecasts, some of them are bound to play out "correctly".

options4me · May 22, 2009

Quote from Ivanovich:

I know that Fast Money is a joke, but what's wrong with this call? The feel right now is that the dollar IS crashing as the talk of a US downgrade (whether or not it is reasonable) is making the rounds. Euro at 09 highs, dollar at 09 lows vs just about everything except the yen right now...gold is close to 1000, oil is rising despite massive gorging inventories worldwide....

I'm not sure I see why you disagree with the call.

Don't forget the massive rise in Soybeans in the past 90 days. (caution now...seasonal decline is coming soon)

piezoe · May 22, 2009

I like the call myself, but then why wouldn't I? Iv'e been long commodities (and getting longer still) since the crash. Obviously I'm not anticipating a worldwide depression, just mainly in the U.S. perhaps, and the latter, if it happens it could be years away, I expect to be the U.S.'s first inflationary depression. I may be wrong, but i am putting my money where my mouth is. Regardless i expect the present inflation to continue and accelerate. So commodities it is!

P.S.: Anyone here bought any pasta lately, the kind that comes in boxes?

ByLoSellHi · May 22, 2009

I hate the call because I can't see inflation and real growth in the cards.

But maybe I'm underestimating the USD deflation effect, or maybe others are overestimating it.

Landis82 · May 22, 2009

Quote from ByLoSellHi:

I hate the call because I can't see inflation and real growth in the cards.

But maybe I'm underestimating the USD deflation effect, or maybe others are overestimating it.

Have you taken a look at the COAL stocks over the past couple of months?

How about OIL SERVICE?

NG DRILLERS?

FERTILIZER?

You are making a big mistake in thinking that there is a direct correlation between economic fundamentals CURRENTLY present vs how the market discounts the future.

ByLoSellHi · May 22, 2009

Quote from Landis82:

Have you taken a look at the COAL stocks over the past couple of months?

How about OIL SERVICE?

NG DRILLERS?

FERTILIZER?

You are making a big mistake in thinking that there is a direct correlation between economic fundamentals CURRENTLY present vs how the market discounts the future.

I'm going on a limb here, but watch out as people going long commodities now suffer the ultimate head fake, and if not hedged, get their heads handed to them even in the face of any further weakening of the USD.

weld1 · May 22, 2009

i agree with by lo ...i think deflation is a bigger concern... no jobs,no buying,and companies keep cutting prices. imho

Cutten · May 22, 2009

Quote from Landis82:

Have you taken a look at the COAL stocks over the past couple of months?

How about OIL SERVICE?

NG DRILLERS?

FERTILIZER?

You are making a big mistake in thinking that there is a direct correlation between economic fundamentals CURRENTLY present vs how the market discounts the future.

He wasn't talking about fundamentals currently, he was talking about future fundamentals.

The market doesn't discount the future, it discounts expectations of the future. Like in June 08 when commodities were going through the roof, and the expectations were the exact opposite of what the future turned out to be.