Morning Note: Commodity Correction Completed?
Is the commodity correction over? That was the question on Fast Money Trader Tim Seymour’s mind Tuesday morning as commodities surged after sharply selling-off the in the last several sessions.
Deutsche Bank and JPMorgan each came out with bullish commodity forecasts this year, citing Chinese growth and returning demand from a recovering US market. But EmergingMoney.com’s Seymour was betting that commodities were fairly valued after last year’s run-up.
“Prices right now are fair and I think there is a lot of speculation in commodities in general,” said Seymour.
Instead of buying commodity futures, Seymour was looking to play this trade through global miners. Rio Tinto and aluminum manufacturers were on Seymour’s radar. However, he was not buying Alcoa. CEO Klaus Kleinfeld cautioned investors that the company saw headwinds ahead during the company’s fourth quarter earnings call last night.
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