Coming inflation leading to LT commodities BOOM

Commodities Futures - Bloomberg - charts and statistics
Apr 09, 2008 - 02:09 PM
Sean Brodrick (http://www.moneyandmarkets.com) writes: The last few weeks have been the roller coaster ride from hell for commodities, an up-and-down whirlwind that has left many traders feeling turned inside-out.

But I think there are strong signs that a commodity correction may be coming to a close. If you're not long yet, you might want to consider putting some money to work.

After all, the inflationary forces and fundamentals that are driving commodity prices higher are still in place. Has the Fed stopped pumping money into the system? Have we stopped importing inflation from China? For that matter, have the Chinese given up on buying new air conditioners, cars, and eating more and better food? No, no and NO!

Today, I want to give you an update on natural resources. First, let's talk about the continued strength we're seeing across the board in the futures markets ...
"There is an economic infrastructure revolution taking place," Frank says. "In January, China and India announced their next 5-year plans, with trillions of dollars in infrastructure spending."

Clearly, these spending plans are lighting a fire under commodity prices.

Before this super-cycle is over, Frank says he expects to see copper — currently around $4 per pound — at $6 or even $8 a pound. Meanwhile, he points to a lack of planting in soft commodities and a lack of exploration in hard commodities as forces that will drive the cost of both much, much higher over the long term.

And as for oil, he's looking for a pullback, but he also doesn't think we've seen the high prices for the year, either. The long-term picture hasn't changed.