Why you should keep faith with commodities

Everyone may be saying commodites – especially oil – are in a bubble, but that doesn't make it true. What we are seeing now is a primary bull market - and there is certainly no need to pull out.

Everybody it seems is saying that commodities in general and oil in particular are a bubble. There is an important investment truism that markets always go much higher and much lower than anyone expects. It's a further truism that at critical economic and investment turning points the majority are always wrong.

So far as the chart below illustrates, there is nothing untoward about the recent crude oil price action, it is no more than an orderly pull back, no more or less than any other pull back over the last twelve months.

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