Is The Commodities Bull Dead?

We think not…As is evident to anyone watching the summer olympics, China is a growing monster of a country that needs raw materials to satisfy its insatiable appetite. The growth projected in China over the next 20 years is truly staggering and implies 9 to 10 percent yearly growth. Steel and oil are just some of the commodities that will be in huge demand. Natural gas and coal industries should see tremendous growth as well. But that is the long term view… I believe that for the remainder of 2008, we should see only moderate growth in the commodities sector along with increased volatility in names such as Potash (POT) Agrium (AGU) and Monsanto (MON). This view stems from the fact that we believe financials may be near a bottom and will command much attention (ie $ cash) from institutions and retail investors alike looking to pick a good entry point.  The bull is not dead but it may be taking a breather for the next few months!