Bonds and the Ag Complex…
Yields are approaching zero and many have been saying it’s the short of a lifetime. I’m not sure. If we’re going into a deflationary environment, yields can at least stay here for a long time. However, wouldn’t that, coupled with the increase in government spending we are witnessing put a floor (at least) in gold? But gold is a retail product. It is not a necessary commodity, but rather just a currency play. In an environment where “need” trumps any currency, I believe it might actually provide a floor for the ag complex. Not sure how to play it, but just some food for thought.
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Tags: ag, commodities, gold, Macro, strategy
Commodities/Futures | Yaron Sadan | 
December 23, 2008 3:06 pm
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