inflation for 2010?

pog it

I only started reading bout shares last year and had my own watched portfolio and I can't understand it but all but one company out of 4 stayed stagnant with the rest 18%, 50%, 100% returns. That's a bit mad I have to say but it is down to the rally that went on up to the end of last year.

This year I am really not sure about what way to think about things. I have been reading here and there and a lot of people are saying to position yourself for the scenario of inflation, which means commodities. I am not going near gold, but oil, natural gas, metals.. these are the areas to go into. But in fairness they are experiencing a good time already and I'm afraid there is already a 'commodity bubble' under way..

I see some stocks I still think it's not too late to buy in these areas but they have already made good advances.

Would I be right in holding off in the expectation of a pullback, or do ye see these commodities being somewhat volatile but ultimately going up long term? (long term say up to 24 months horizon)

ED 209

With the huge cash injection globally there will be inflation there is no way around it unless central banks crank interest rates. The politicians would go crazy if that happened. I can't see the ECB hiking interest rates at the right time (they should be doing it now). If you are confident in your market timing then run with it.

Highly Salami

I agree, commodities should do well in 2010, with the possible exception of nat gas where demand is very seasonal (peaks this time of year).
Oil, metals, food should do well because of economic growth and inflation.