XJO 0.58% 8,091.9 s&p/asx 200

mondayitis, page-70

  1. 14,116 Posts.
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    "if you look at charts for commodities copper, gold, oil, CRB index for example - they all start rising before shares start rising. "

    thanx for input peter but I disagree
    might be case when you are looking at resource stocks but not industrials

    industrials have to respond to demand and have higher sales first
    once they start producing more, commodity prices go up

    higher production usually leads to higher demand for raw materials and more people being hired

    more people being hired leads to commodity prices going up

    i would say sales first in industrials
    increased production next
    then higher commodity prices
    higher commodity prices leads to higher share prices in resource stocks

    so industrial shares up
    production next
    commodity prices
    resouce stock prices
 
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