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Monday, May 16, 2011

Suddenly, This Commodity Selloff Looks Really Familiar


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Monday, May 16, 2011
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Suddenly, This Commodity Selloff Looks Really Familiar

Commodities have been getting clubbed as of late, but it's not clear yet whether this is a "dip" or the start of something big.

A new report from the commodities team at Citi hints at the former -- something along the lines of a dip.

And it turns out -- as this chart observes -- there's a pretty good historical pattern of early-year dips in both Chinese GDP growth and a slip in steel and base metal stocks (FEBASE).

It's certainly plausible that this is just a seasonal dip. Read »


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