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Commodity traders harvest billions while prices rise for everyone else


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The Bloomberg Commodities Spot Index is nearing 2008/11 peak.
By Javier Blas, Bloomberg
3 Jul 2021 
00:50 
Image: Qilai Shen/Bloomberg
Doug King set up his hedge fund in the early days of the commodity super-cycle in 2004. It was perfectly timed: voracious Chinese demand lifted the price of everything from oil to copper to record highs. Investors flooded the commodities sector. At the peak, King’s Merchant Commodity Fund was managing about $2 billion.
But the boom ended abruptly after the 2008 global financial crisis and the onset of the US shale revolution. Prices plunged, big institutional money got out and many specialist hedge funds closed. ....

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Commodity traders make billions as oil, copper, battery metals prices rise


Commodity traders make billions as oil, copper, battery metals prices rise
Cargo ships entering one busiest ports in Singapore. Stock image.
Doug King set up his hedge fund in the early days of the commodity super-cycle in 2004. It was perfectly timed: voracious Chinese demand lifted the price of everything from oil to copper to record highs. Investors flooded the commodities sector. At the peak, King’s Merchant Commodity Fund was managing about $2 billion.
But the boom ended abruptly after the 2008 global financial crisis and the onset of the U.S. shale revolution. Prices plunged, big institutional money got out and many specialist hedge funds closed. ....

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Jerome Powell Rocks the Market - The Daily Reckoning


Jerome Powell Rocks the Market
Poor Jerome Powell. This unlikely Atlas bears all the world’s weight upon his slender shoulders.
We hazard he ages one year for each torturous day he lives.
Anything he mumbles or fails to mumble can send markets careening.
Early yesterday afternoon, he mumbled something to
The Wall Street Journal:
We expect that as the economy reopens and hopefully picks up, we will see inflation move up through base effects. That could create some upward pressure on prices… We want inflation expectations to be anchored at 2%. Inflation is running below 2% and has done so since the pandemic arrived… Today we’re still a long way from our goals of maximum employment and inflation averaging 2% over time. ....

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