Commodity Watch

Commodities are telling us something here with the Reuters Commodity index down 12.4% from the July highs. It is not just energy, which accounts for 33% of the index, that has declined. Precious metals, which account for 7% of the index, as well as other commodities (lumber, corn, wheat, soybeans) are also down in recent weeks. This is saying something about the economy that we suspect is not good.