Saturday, July 7, 2012

Barrons: Why Commodities Are Set to Tank

By SIMON CONSTABLE

Investors in commodities need to watch out.

Fresh data show the U.S. economy is weakening. The economy added a paltry 80,000 jobs in June, not enough to keep up with population growth. Earlier last week, we learned the manufacturing sector contracted in June for the first time since July 2009. Other indicators have been equally uninspiring. 

Why does this matter to commodities? The raw-materials sector tends to get hit harder than the rest of the economy in a recession. See original post here.

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