"Don't buy anything that can be manufactured with a printing press"
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Tuesday, August 24, 2010
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From OilPrice.com:
I just want to take a moment to provide the long-term view of commodities. This is my favorite asset class for the next decade, as investors increasingly catch on to the secular move out of paper assets into hard ones. Don’t buy anything that can be manufactured with a printing press.
Focus instead on assets that are in short supply, are enjoying an exponential growth in demand, and take five years to bring new supply online. The Malthusian argument on population growth also applies to commodities; hyperbolic demand inevitably overwhelms linear supply growth. Consumers want to buy stuff tomorrow, but many commodities take up to a decade to bring new production online.
Of course, we’re already eight years into what is probably a 20-year secular bull market for commodities and...
