Friday, May 06, 2011

When there is one door...

Someone yelled "fire" in the movie theater. I will have more to say about this in context of Galbraiths's "Bezel" measure soon.

Its a bubble. Capital flows in like a river, and blasts out like a water cannon.

05/05/2011 7:15:07 PM ET
NEW YORK/LONDON (Reuters)佑ommodity markets were beset by a nearly unprecedented onslaught of investor selling on Thursday [May 5] as modest early profit-taking on mounting economic worries snowballed into one of the worst days on record. In a slide reminiscent of the steep sell-offs in the wake of the 2008 financial crisis, Brent crude oil dived a record $12 a barrel, natural gas dropped over 7 percent and silver, whose earlier losses were a catalyst for the slide, slumped by nearly $5, its biggest one-day dive since 1980.

Roubini Directs Clients to Cut Commodities Exposure
05/05/2011 7:00:55 PM ET
NEW YORK (Reuters)由oubini Global Economics, a major investment advisory firm, told clients on Thursday [May 5] they should take profits from commodities markets, cutting exposure to raw goods to neutral from overweight, the firm's head commodities strategist told Reuters. In a note to clients, the New York-based consultant to hedge funds, private equity houses, sovereign wealth funds and other investors advised paring broad commodities exposure for the first time since at least mid-2010.

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