Hello, are feeling dizzy?

Hello, are you feeling dizzy? Are you feeling not going anywhere? Every investment safe haven myth is busted -- the latest was commodities. Oil, gold, agriculture commodities, etc suddenly fell from the top on March 17. 0.25% lesser than expected Fed rate cut temporary stem sliding dollar?, time to take profit?, deleveraging, etc? Something has changed, yesterday assumptions have changed, it will affect the way people allocate money again.




Closer at home, most will ask what happened to their plantation stocks. I called it plantation bubble when I started blogging about one month back. Why? Office staffs suddenly talking like experts about plantations stuffs: FFB, yield, maturity etc. I was jokingly telling them CPO price will hit RM 5,000, guess what they believed it. The next day, I saw price soared to RM 4,000, then headlines flashed RM 4,500. Guys from Singapore, Taiwan and the US were asking about plantation stocks tip. The signs were too glaring.

Now, the CPO price has corrected somewhat, is the story dead? Not quite, another 15-20% downward corrections will worth some considerations. I think the long term food inflation is quite real(see pictures). Stocks are dwindling(see wheat example), food production acres are shrinking, emerging markets economy are growing, etc