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At the Cambridge House World Gold, PGM and Diamond Investment Conference, Smartstox talked with John Kaiser of Kaiser Bottomfish Online about his thoughts regarding the general economy and where he believes the commodity markets will be going.
John’s likes to frame the trading market psychology as having mindset of ‘The Cyclical Bears’ duking it out with their opposing team, ‘The Structural Bulls’. Cyclical bears believe that we’ve gone through a ‘hot spell’ in the demand for metals, but when the US economy slows down the cascading effect will be a glut on the market. The structural bulls though, see a change in world consumption patterns such that the US is much less important, and the build out in the rest of the world will keep demand for metals and other commodities high for years to come.
John believes that metal prices now establishing new ‘norms’ where the prices seen in the past, like 60¢/lb copper, won’t be seen again. It doesn’t mean prices will go up from where they are now, but that they won’t go down to where they had sat for many years. He notes that the cyclical bear approach of shorting companies with base metal exposure, expecting to see a price drop in the commodities, has (so far) burnt at least one newsletter writer.
John also notes a bright possibility for the western economies manufacturing base with the advent of a global environmental consciousness. He thinks that the innovation and manufacturing excellence for new products that address the shortcomings of the ‘planned obsolescence’ and inefficient energy usage of current generation goods will come from the West.
Click here to watch our interview with John Kaiser.
Smartstox.com provides investors with informative investment-related content through video and audio interviews with the management of small cap companies discussing their organization’s activities and outlook, along with written profiles of the organizations. For these, along with more market comments from leading analysts, go to http://www.smartstox.com!
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"Smartstox Online-TV Talk Show" interview host, Stanlie Hunt, has spent over 25 years in the investment business. Mr. Hunt, President and founder of Dynamic Stock Market Analysis, has been a speaker at numerous investment conferences, has interviewed hundreds of domestic and international companies, and appeared on CBC’s Nightly Business News. He now actively researches emerging resource companies, which are featured on his "Smartstox Online Talk Show"
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