Commodity Stocks and Currency

One thing that is certain in market is uncertainty. Amidst all uncertainty as an investor we try to gauge the health and prospect of different asset classes and sometime individual entity.

All asset class are dramatically related in global economy. An Almost $5 gas per gallon caused a demand destruction for crude leading to short term strength of USD. Stronger USD also Prompted reversal of speculator position’s in currency markets. But Important question that we face is that whether USD would remain strong in mid term?

On Wall Street it is certain that unless Financial gain strength it is not going anywhere. After Q2 results we have seens stocks flying up despite multi billion losses as market was expecting bigger losses. Might be investor turn right this time as low oil prices fuel American consumer's appetite for more stuff.