T & K Futures and Options, Inc. believes that hyper inflation will soon be here helping start a commodity bull market that may last for a decade
Port St. Lucie, FL (PRWEB) March 31, 2009
The commodity markets recently suffered their worst sell-off since the 1950's. This deflationary cycle is the worst since the Great Depression. Bear Stearns disappeared over a weekend and Lehman Brothers filed for chapter 11 bankruptcy protection, the largest in US history. Margin calls from hedge funds and other financial institutions necessitated a massive liquidation of futures contracts which was a major catalyst to the historic commodity market sell-off.
The commodity futures markets have been the investment of choice by hedge funds, commodity funds and risk inclined investors searching for a hedge against the falling US Dollar, a hedge against inflation and higher yields on investments. Much of this money invested by the large hedge funds in the commodity futures markets was borrowed which compounded the problems creating a perfect storm of panic and risk aversion last year and in early 2009.
The recent commodity futures market sell-off claimed many casualties. Copper futures prices fell by 50%. Natural gas futures prices fell by almost 75%. Gold futures prices dropped over $200 an ounce. Silver futures prices fell over $8 an ounce. Crude oil futures prices fell over $100 a barrel. Wheat futures prices fell over $7 a bushel. Soybeans fell over $8 a bushel. Sugar futures prices fell over 5 cents per pound.
The US Treasury Department in collusion with the Federal Reserve Bank recently stated their intention to print a trillion new US Dollars and then use them to buy treasuries. This can be interpreted as a very inflationary catalyst. "T & K Futures and Options, Inc. believes that hyper inflation will soon be here helping start a commodity bull market that may last for a decade".
The massive sell-off in the commodity futures markets can be seen as a buying opportunity for those investors who believe that inflation is near and the economic expansion of such countries as China, India and Russia will continue to fuel the global commodity bull market for many years to come. Visit http://www.tkfutures.com/education.htm to learn more.
Gold ETF purchases now are comparable to those of the major central banks and gold mining has not kept up with the current demand. Visit http://www.tkfutures.com/gold.htm to learn more about gold futures trading. Silver mining has not kept up with the usage of this industrial and precious metal. It has been estimated that 95% of all silver ever mined has been consumed. Visit http://www.tkfutures.com/silver.htm to learn more about the silver futures market. OPEC recently cut its production in an attempt to increase crude oil futures prices. Visit http://www.tkfutures.com/crude_oil.htm to learn more about crude oil futures trading. Many analysts believe that global peak production of crude oil has already happened. Global grain supplies are near record lows. Soybean demand is the highest in history. Sugar demand is near record highs because of South America's ethanol production. Visit http://www.tkfutures.com/sugar.htm to learn more about sugar futures.
The stock and real estate markets may stagnate for many years and investors seeking yield may need to consider investments in futures, options or managed futures funds as part of their portfolios.
The author of this article is a 15-year veteran of the commodity futures markets and the president of T & K Futures and Options, Inc. Commodity futures trading, commodity option trading and managed futures trading carries substantial risk of loss and only risk capital should be used.