Teeka Tiwari

Time to Buy Commodities Again

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It's laughably predictable how the media starts calling the bottom at the first sign of a rally.

I guess if they keep calling the bottom, at some point they will get it right.

While this rally could have some legs to it, remember that double-digit bear market rallies can sure look and feel like bull markets.

Who knows, maybe the media has it right this time and the world is about to embark on a new leg of fabulous economic growth. But can someone just explain to me where the growth is going to come from?

The U.S. dollar continues to trade well, but don't let that strength fool you.

I'm not just talking about the greenback, either. The world's governments are printing money and spending it at an alarming rate. I can't see how the world's paper money purchasing power will not precipitously erode during the next several years.

I can't find a single currency that I want to make a long-term commitment to.

As countries continue to devalue their currencies (by printing more of it to pay for "fiscal stimulus"), and we look down the investment road, I ask you, how do we avoid nasty, currency-driven, Weimar-Republic-type inflation?

How do we avoid massive interest rate hikes in the future to combat that inflation?

Every policy decision I read about seems to steer us more and more surely down this road to ruin.

Here's a reality check: FDR's great work programs did not, let me repeat that, did not end the Great Depression. World War II has that claim to fame.

In the past I've argued for government intervention, but it's clear we are not receiving nor will we receive the appropriate government intervention the economy needs.

We can lament it or we can profit from it.