Monday, November 23, 2015

Commodity rout in visual format


Nice infographic from Visual Capitalist that shops the extent of the price declines in various commodities. The main culprit is the increase in value of the US dollar.  As commodities are priced in dollars, when the value of the dollar increases the price of commodities goes down. There is a silver lining because the low prices increase demand and force marginal producers out of business. This extended low price environment sows the seeds of the eventual next boom. Low prices are the cure for low prices.

No comments:

Related Posts Plugin for WordPress, Blogger...