tag:blogger.com,1999:blog-816559531110064247.post1275795645334165437..comments2024-03-08T01:03:44.522-08:00Comments on Humble Student of the Markets: Commodity weakness is likely localizedCam Hui, CFAhttp://www.blogger.com/profile/09672203690656029787noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-816559531110064247.post-50276168619792087172013-04-24T01:07:11.645-07:002013-04-24T01:07:11.645-07:00It all comes down to risk on while the economy is ...It all comes down to risk on while the economy is at best going sideways. Weird unnatural combination.Riknoreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-27403519969448194962013-04-23T08:54:29.133-07:002013-04-23T08:54:29.133-07:00Could the global economy be moving to a new invest...Could the global economy be moving to a new investing regime? If so, are the smart money and hedge fund managers tracking the right "risk on / risk off" indicators?<br /><br />Consider the US Manufacturing Renaissance and Energy Independence Thesis. <br /><br />If the global economy is moving towards a world of local manufacturing (e.g., 3D printing) and local servicing (e.g., organic food from sustainable local farms), why track crude oil future, iron ore prices, China electric usage, and other exotic indicators? <br /><br />Labor cost in China is no longer relevant if the last marginal unit of goods are made in the local markets where the goods will be consumed (e.g., Apple new factory in US, Lexus new factory in US, etc).<br /><br />Oil prices is no longer relevant in the world of Zip Cars, Hybrids, and Teslas. For sure, shipping costs from "Made in China" goods are no longer relevant for the marginal unit of goods produced in US.<br /><br />Are hedge funds still tracking complex indicators tied to the old model of "Design in US, Manufacture in China, and Ship Back to US/Developed Markets for Final Consumption? <br /><br />What are the new indicators to track if indeed the world has moved on to a new global economic model? <br />WimpyInvestorhttps://www.blogger.com/profile/18148362644880449393noreply@blogger.com