If commodity prices continue to go up, as many experts anticipate, your customers can stay ahead of inflation if you can help them understand that, over the long term, home prices will go up.
The primary risk here is what
if commodity prices rise?
Traditional commodity ETFs such as the iShares S&P GSCI Commodity - Indexed Trust (GSG) simply hold long positions in various crops, metals and energy products, and
if commodity prices fall, so does the value of the fund.
«We believe that reserve accumulation by China, Japan, India and Russia has peaked and that these diversification strategies will shift
if commodity prices have structurally peaked.
Second,
if commodity prices fall — as they have over the past year and a half — then consumers will have more money to spend on services, and the result will be lower goods price inflation but higher service price inflation.
That debt is a weight that has the potential to sink the company
if commodity prices continue to remain weak, and it's why investors are better off ignoring this company until it has these problems sorted out.
Resource exports now account for around half of Australia's export revenue, and that will remain broadly true even
if commodity prices fall a bit from here.
Not exact matches
«
If Trump abandons the deal, he risks a spike in global oil
prices,» said Ole Hansen, head of
commodity strategy at Saxo Bank, adding that re-introducing U.S. sanctions could remove 300,000 - 500,000 bpd of Iranian oil from global supplies.
The streamers thus have their pick of low - cost, high - grade projects and can drive a hard bargain, setting themselves up for strong earnings growth
if and when
commodity prices rise.
«
If Trump abandons the deal, he risks a spike in global oil
prices... The re-introduction of U.S. sanctions would hurt Iran's ability to transact in dollars,» said Ole Hansen, head of
commodity strategy at Saxo Bank.
If there's a silver lining, the Bank of Canada's
commodity price index appear to have levelled off since March, so the GDI news in 2015Q2 doesn't look like it will be as bad as it was in 2015Q1.
As with all
commodities, palladium
prices depend on supply and demand -
if there is more supply than demand,
prices will fall.
«
If Trump abandons the deal, he risks a spike in global oil
prices,» said Ole Hansen, head of
commodity strategy at Saxo Bank, noting that reintroducing U.S. sanctions could remove 300,000 - 500,000 bpd of Iranian oil from global supplies.
It is going to bring down oil
prices by $ 5 to $ 10
if people warrant that risk premium is important,» said Jonathan Barratt, the managing director of
Commodity Broking Services, based in Sydney.
Even
if President Obama approved Keystone XL or the National Energy Board gave the green light to Energy East, falling
commodity prices mean that soon there might not be enough oil flowing out of northern Alberta to fill those new pipelines.
Given these factors,
if uncertainty fades about the prospects for China and other emerging markets, there is some upside risk to our
commodity price assumptions, with implications for Canada.
Even
if we don't see outsized
price increases in
commodities, from a total return perspective,
commodity returns will benefit from a change to positive roll yields based on the reshaping and structuring of the fundamental market in
commodities.
At the same time, the Fed may raise rates
if inflation picks up, and there's a host of reasons that could occur: acceleration in wages, a weaker dollar, rising
commodity prices, growing risks of protectionism, overseas cash repatriation.
If China leaves,
commodity prices everywhere will fall.
If there is good news for Canada in all this, it's that
commodity prices have remained elevated, which helps the country's terms of trade.
If anything should be clear from the bubbles of recent years, the greatest risks are not when
prices are depressed, the economy is weak, and investors are frightened, but rather when
prices are elevated and an unendingly positive outlook for technology, or housing, or global growth, or private equity, or emerging markets, or
commodities seems all but certain.
For most countries individually, it is plausible to argue that the rise in a wide range of
commodity prices is exogenous — even
if it is driven by global demand, our own contribution to that demand is small.
But
if we had all the central bankers of the world around a table, could we collectively regard the rise in
commodity prices as exogenous?
Still, even
if it only has a short - term impact on
prices it might muddy the water and make it a little hard to interpret the impact of copper
price changes, but the
price of other hard
commodities, including iron ore, can help clarify the role of Chinese demand.
Next year poses a quandary:
If the pundits are saying that
commodity prices will be flat, then the industry's cash flow will not change much from this year either.
This means, to return to iron,
if you understood China as a growth «system», with its own logic, its liquidity channels, its institutional distortions, its balance sheets that embedded pro-cyclical or counter-cyclical tendencies, etc. you would have known that once the process started, rebalancing was going to cause iron ore
prices (and
prices of other hard
commodities) to collapse, and I stressed, as I often do, that I did not think the word «collapse» was overly dramatic.
Thurber told CoinDesk that,
if bitcoin behaves like other
commodities, the
price should increase as the supply decreases.
If the dollar decreases in
price, it becomes more affordable to purchase oil, so that
commodity's
price usually rises.
But investors can't count on that to last
if the recent upturn in
commodity prices proves unsustainable.
If growth in America is accelerating, which it seems to be, and any remaining slack in the labor markets is disappearing — and wages start going up, as do
commodity prices — then it is not an unreasonable possibility that inflation could go higher than people might expect.
If China rebounds to its former tigerish growth rates, it could drive
commodity prices back up.
If governments and central banks are intensely working to levitate bonds, fiat currencies, and stock markets, and are working equally intensely to suppress
commodity prices, what do they have to hide?
We regard the greater stability in
commodity prices, along with a lessening of volatility in financial markets, as welcome, and believe it should provide a more stable platform for the global economy, where growth remains acceptable,
if lower than desirable.
If you compete on
price there is a risk that you will become a
commodity business.
Therefore,
if the U.S. economy continues to power ahead and China manages to maintain 7 to 8 percent growth in 2014, that has the potential to lift
commodity prices.»
If oil
prices continue to stay above the level assumed in the March 2011 Budget, and
commodity prices continue to rise then corporate profits will be higher and the revenue savings resulting from keeping the rate at 18 % could actually be higher than in the Liberal platform.
If each subsequent month on the futures «curve» is
priced higher than preceding months, a
commodity is said to be in contango.
Due to the volatile nature of the gold
commodity, you need to monitor the market daily and sell off
if the
price is good enough for you to make massive profits.
Short term and gold is just another trade like any other future or
commodity, which is fine, but you have to keep in mind that
if there's a catastrophic failure in the market like in 09 then gold probably will drop in
price as well.
If one is right on the
commodity (and has the patience), the leverage contained in the share
price appreciation is superb, and usually occurs without the attendant volatility of the futures and / or options markets (as fun as they can be).
When our once - contentious bearish expectations were
priced into the market, it was a reasonable question to ask
if we were finding sufficiently compelling valuations in the long - beleaguered
commodity sector.
If the media industry, in particular, continues the current race to the bottom on
price, rather than focusing on business value, it will forever be a
commodity.
If there is an impact, we see it leaning negatively for
commodity prices in general.
If your ETF holds the physical
commodity, the value of your ETF shares will move with the spot
price of the
commodity, though the
price could also be affected by security issues around storing the physical
commodity itself.
If the supply of that
commodity is limited (e.g., no more gold to make coins can be mined), then the ability to manipulate the currency
price (exchange rate) downward by varying the quantity in circulation (as occurs with quantitative easing in fiat currencies) is no longer an option.
If the market for a particular
commodity suffers from strong, persistent contango, an ETF that buys futures contracts on that
commodity will perform worse than the spot
price of the
commodity itself.
If we put a
price tag on physical stature, intelligence, race, or eye or hair color, as well as relative freedom from disease, our unborn children will become
commodities.
Shoppers are very
price sensitive across homogenised
commodity categories of temperature agnostic products, and it does not matter much
if they remain on the front step for a while, diametrically opposed on both counts to produce.
But he warned that could slide to $ 5.60 - $ 5.90 a kilogram
if global
prices for key dairy
commodities did not improve as expected.
Mr Tracy also said the cut to farm gate
price — the first since the financial crisis - from $ 5.60 to $ 4.75 - $ 5 a kilogram, would be much lower
if the company didn't switch from
commodities to consumer brand products.