DALLAS, Texas 3/21/2009 2:08:14 AM
News / Finance

Surprise Fed Announcement Good for Commodities, Energy and Mining Stocks, Article Posted on BeaconEquity.com

BeaconEquity.com announces the publication of an article covering The Fed's commitment to buy up mortgage-backed securities.

 

Investors can view all of the investment articles for free by visiting: http://www.beaconequity.com/m

 

In the article the author writes:

 

“The Fed's announcement Wednesday it will begin buying up to $1.2 trillion of U.S. treasuries mortgage-backed securities and agency debt from Fannie and Freddie sent commodities sharply higher, led by oil and the precious metals.  Silver jumped more than 10% from its intraday low Wednesday from just below $12 per ounce to close at $13.58 Thursday on the COMEX.  The bottom in commodities prices appear to have been reached in late February and early March.

 

Commodities have bottomed out at 200, according to Faber:

 

The famed Marc Faber, known for his remarkable macro-economic prognostications, said on CNBC, ‘A year ago and 18 months ago it was a huge mistake to buy equities at a time when everyone was in Goldilocks land and the sun was shining and there were no clouds on the horizon. And now everyone is negative and some markets have already discounted a lot of the bad news, in particular, in the commodities space because the CRB today is today bottomed out 10 days ago at 200.  In 1999, it was 182. So at 200 we're 10% higher than in 1999.  But the 1999 low was after a 20-year bear market.   So we were unbelievably low in 1999 and again now unbelievably low so that's an asset class I would look at.’

 

To read the entire article visit http://www.beaconequity.com/m

 

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Source: BeaconEquity.com

 

Beacon Equity Research

Jeff Bishop, (469)-252-3505

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