Syria and Commodity prices

Libya is killing children with gas, and the rest of the world is not interesting in sitting back and look at it without doing something with it. Especially not Obama. He want`s to do something about it, and he want`s to do it right now.

The question is; what impact will that have on the financial market?

Two years ago, Obama supported the rebels in Libya and killed Gaddafi. Now it is total chaos in that nation, and they are not able to produce a drop of oil to sell to the rest of the world. The oil prices will continue to go higher, and what happens in Syria will not affect the oilprices on the international market. Oil and commodities will continue their trend and go higher, and investors are still bullish.

We have a correction in the market right now, and this will probably continue for a while, no matter what`s going on in Syria. At some point it is all about psycology. People will start to sell in panic, and as you know, september and october is stormy months in the financial markets.

Commodities and gold stocks made a peak in 2011. It has been a downtrend for a couple of years now, and they seems to have bottomed this summer. Now it looks like this is taking off again, and that is not because of what`s happening in Syria, but it is all because of the printing money strategy by the FED, plus the coming inflation.

If you wonder how to deal with the market now, take a look at the CRB index:

CRB index

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