JO - Coffee Goes After The Lows
As I sit here sipping my morning cup of coffee and reflecting on the low price of the fragrant beans, I ponder the many markets that I had watched over the past four decades when they fell to the bottom end of their pricing cycles. It is so easy to get bearish when prices are moving to the downside as trend-following, and bearish sentiment often pushes commodities prices to levels that are unsustainable on the downside. Unlike stocks, commodity prices rarely, if ever, go to zero. The price of electricity can go to zero because