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RE: Commodities were never so cheap compared to US stocks since 1971

in #money7 years ago (edited)

@penguinpablo easy money policy of the Federal reserve and the fact that companies are getting virtually free money.

Countries whose sole economic lifeline is commodities are now, in the interest of national security, are producing rather than trying to abate supply/demand issues. Add this to the flat (read: not increasing) economic power of people, and consumption stays relatively flat.

Also, wages are pretty stagnant so companies are not increasing salaries and are expecting employees to do more.

These are just some thoughts. By no means am I claiming to be an economist...