CHAPTER 14
Commodities
The notion of commodities as economic indicators may be the simplest, most elementary economic concept there is. It makes sense that as the economy accelerates, so will the demand for commodities and related materials. This increase in demand generally results in price appreciation, itself a useful economic indicator. Conversely, as economic activity cools, so, too, will the demand for most materials, lowering their respective prices. There are plenty of reasons for investors to include commodities in their arsenal of economic indicators. In addition to being a distinct and important asset class, commodities and their respective prices reveal a great deal about underlying economic conditions and provide insight into the ...
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