Summary
Oil has likely hit its lowest level (sub $40 per bbl) we will see in 2009. Gold is expected to be in a trading range with an overall upward trend as well. Copper has bounced off lows and is anticipated to also be in a trading range with an upward trend.
Analysis
There is anticipated to exist further end market depression during first quarter of 2009. Most all of the bad news with major durable producers is out and the replacement cycle will pick up as the credit markets ease. The bailouts have done little so far to stimulate. Instead have permitted the banks to "cover their bets" with no strings attached on renewed lending. Government pressure is expected with the new Administration and economic stimulus programs planned.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
