Since the end of April, Equities have derated by 10-15% whereas the respective Commodities have only corrected by 3-5% – what gives? Equities are forward looking instruments that discount future earnings and cash flows, whereas the underlying Commodity markets are dictated by physical market trends seen by the shape of its curve; either you have it or you don’t! Right now, the fear factor in the equity market seems to be at extremes. 2012...
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