Fellow farm managers, this post is a question about time management(time spent on analysis) and about netting in only the information that is high in value.
Lately I've become more concerned with the equity markets and the effects they can have with commodities(particularly after the events of three weeks ago). In 1987 when the Dow and TSE lost 25% of their worth in the span of a week, commodities(corn & beans) only lost 4.5-5% of their worth, recovering about half the loses within a week, and all the loses in 4-5 weeks!
We seem to be moving into a lull period with little new news regarding commodities. As, farm managers, should we be spending more time watching the equity markets for sell signals in commodities or are the fundamentals so strong that commodities will recover quickly again as they did in '87? Does anyone have a sense that "outside" investors are playing a different roll in the commodity markets now days, than they did 20 years ago?
Lately I've become more concerned with the equity markets and the effects they can have with commodities(particularly after the events of three weeks ago). In 1987 when the Dow and TSE lost 25% of their worth in the span of a week, commodities(corn & beans) only lost 4.5-5% of their worth, recovering about half the loses within a week, and all the loses in 4-5 weeks!
We seem to be moving into a lull period with little new news regarding commodities. As, farm managers, should we be spending more time watching the equity markets for sell signals in commodities or are the fundamentals so strong that commodities will recover quickly again as they did in '87? Does anyone have a sense that "outside" investors are playing a different roll in the commodity markets now days, than they did 20 years ago?
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