Jim Rogers says commodities will rebound after drop (update 1 from Bloomberg)

Bloomberg's journalists have been speaking with good old commodity guru's Jimmy Rogers and Marc Faber about commodities.

``I don't see that it's the end of the bull market,'' the chairman of Rogers Holdings, said in an interview in Bangkok before speaking at an investor conference later today. ``Until either a lot of supply comes on stream or the economy collapses, the bull market will continue,'' he said.

Soybeans, copper, platinum and crude oil have dropped from all-time highs after a rally in the dollar curbed demand for raw materials as a hedge against inflation and concerns increased that economic growth will slow. Sixteen of the 19 commodities in the Reuters/Jefferies CRB Index fell this month, after the index plunged 10 percent in July, the biggest such drop in 28 years.

``I am contemplating whether it's time to get involved in base metals again,'' Rogers, 65, said today. ``I haven't bought any for awhile.''

Gold fell to the lowest since October on Aug. 15, while platinum had the biggest intraday loss since 2001. Aluminum has dropped 18 percent from a record on July 11 and Nickel is down 26 percent in the past year.

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Click here to access the full article from Bloomberg

"Oversold" Markets -- Brazilian Companies "among the cheapest" reports UBS.

UBS, as reported by Bloomberg in this article (linked here) feels Brazilian companies are "among the cheapest," trading in emerging markets.  Check the article out for yourself, and also take a look at how pretty much every emerging market is being haled as being "over-sold," "or having "bottomed out."  

- China Equities: Bottoming out

- Commodities oversold

- The Euro (currency) is oversold

- Gold and Silver Extremely oversold

- Corn rises on speculation the crop is oversold

- Myriad of oversold stocks

- UK market undervalued

People are in a frenzy and investors should tread carefully in these emerging markets, choosing companies that have strong fundamentals on their balance sheet, not on a geo-political scale or when a short rally in global equities occurs.

The bottom line... the health of financial markets and the macro-global economy is just not looking all that nice.

Chinese shares hit 20-month low

While the the global economy slowed in 2007, China, the dragon of global economic growth recorded GDP growth of 9-10%. However, it has been a different story for Chinese stock markets and internationally listed shares.

The Shanghai Composite Index, which was just recently one of the best performing markets on the planet, rising over 200% in just a few years time... is now ranked as one of the world's worst preforming benchmarks.

The drop was bound to happen for a variety of reasons. One reason in particular which I would like to focus on has been because of risky speculation by the common Chinese citizen.

It is not exactly a good thing when a large portion of the money moving in and our of your financial markets, particular in equities and bonds is being moved by people like this:


Investors watch the electronic board at a securities exchange in southwest China's Chongqing Municipality, Aug. 18, 2008. Chinese shares slid more than 5 percent on Monday to a 20-month low. The Shanghai Stock Exchange closed at 2,319.87 points, down 130.74 points, or 5.33 percent, from the previous close.


Investors watch the electronic board at a securities exchange in southwest China's Chongqing Municipality, Aug. 18, 2008. Chinese shares slid more than 5 percent on Monday to a 20-month low. The Shanghai Stock Exchange closed at 2,319.87 points, down 130.74 points, or 5.33 percent, from the previous close.

As Chinese stocks and the economy surged, and the common Chinese person for the first time in centuries had a completely new way to store their wealth. In addition to believing their money was safe, much like it is in banks, the average person was seeing their savings (invested in securities) grow... A very rare and un-heard of concept in China. Even after the introduction of modern banking in China it was rare for people to earn significant returns from interest on their deposits, not to mention growth of 200% as they recently experienced from investing in stocks.

As a result there has been a tremendous influx of money into Chinese equity markets, many times by investors choosing stocks based off lucky numbers or anonymous tips. As you can see above, even in cities such as Chongqing, which is hardly as wealthy as places like Beijing or Shanghai, people have become fascinated by the stock market. They now sit days on end watching their life savings tick up and down on gigantic boards in trading houses located throughout the country.

APEC discusses Peruvian initiatives to speed up trade

Xinhua, the Chinese state media giant has reported on Peruvian initiatives to speed up the establishment of a new trade zone of the Asia-Pacific region, as some 100 delegates met in Cusco.



The "Inca Window," for Commercialization of Commodities, a term coined at this meeting in Cusco, describes the major goals of APEC as establishing a institution and order in which the 21 members of the bloc will benefit from

1) Increased efficiency and speed in trade
2) Reduced costs associated with trade
3) A closer and more "functional" relationship between regions/ countries which will thereafter encouarge further levels of exchange and cooperation.

Peru believes that by 2010, a mechanism of "anticipated resolutions" will clarify customs obligations for imports.

Rather abstract statement if you ask me, and one few Chinese readers will have any understanding of what it truly means (in my opinion). However, it is nice to see Peru making Chinese press and thus i'll consider it news worthy considering the focus of this site.

Actions and words being exchanged in Cusco are re-reverberating as far as China... "Cool" no?

Click here to access the full story from Xinhua