From Food, Fuel & Finances For Thought by Todd Buchholz:
More important though, we are suffering from a commodities bubble. Speculators, even ma and pop investors have been pouring their savings into easy-to-buy commodity funds. These didn't exist in past cycles. Since stocks, bonds and property investments have stumbled, commodities have become not just the flavor of the month, but the flavor of the decade.
Remember, though, all bubbles must pop. Hyperactive investors in tech in 2000 told us the NASDAQ would never pop. Realtors said the same thing about housing prices. Now those realtors are waving their arms in the streets, desperately trying to get you to attend an open house, open house indeed. When will the commodities bubble pop? Well not until just about everyone is convinced it's not a bubble. Bubbles like to inflict pain and burn investors. It could be a searing summer ahead.
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