What are Roubini's new predictions? This time the noted economist is future casting the price of commodities. He is looking for the global economy to move toward growth in the later part of 2009 into 2010.
When the world moves into greater production, the need for raw materials rises. Roubini, sees commodity prices moving up during this expansion stage.
Already China's $585 billion stimulus package has spurred lending and sent share prices skyrocketing. China's economic growth surged 7.9% from a year earlier and is well on the way to meeting its target of 8% growth this year. China's purchasing manager's index stood at 53.3 in July, up from 53.2 in June. A reading above 50 indicates expansion in the the economy.
The Reuters/Jefferies CRB index of 19 commodities rose 12% this year . On July 30, it jumped 3.9%, the biggest gain since March 19.
Oil will lead the way. It's up 56% in 2009. Copper is up 86%.
Gold, nickel, and iron ore will soon follow suit. The currencies of New Zealand, Australia, and Canada will benefit from greater exports which generate 50% of their revenue.
Do you believe that Roubini's predictions will come true?
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