Meanwhile, in the commodity markets, a sign of troubles ahead emerged, as the scenario last seen during the 2008 crisis is seemingly repeating itself. Namely, Bloomberg Intelligence’s Senior Commodity Strategist, Mike McGlone, took to Twitter on October 25 to warn of the correlation in the commodity markets with 2008.
Similar performance
Commodity prices seem to follow a similar trajectory to that which occurred in 2008, where the valuation was 1.6 times greater than its 40-month moving average, causing prices to drop. McGlone concluded:
Unclear future
It seems that the financial markets are headed into rough waters, where smooth sailing will no longer be an option for market participants. A crash in the commodity markets could spill over into other sectors, and with the rising interest rates, the outlook for stocks looks bleak at the moment. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
