Wednesday, January 03, 2007
Wow. The commodity markets, the dollar, are taking some lumps these last couple of days.
Oil down over $5 in the last two days. That is about 9 1/2% Copper down. Precious metals down. Winter doldrums? Profit taking? It's hard to say - I'm not a market analyst type, but if oil continues to go down, that would likely slow down Alberta, and by extension, BC. Less Alberta oil money in the BC RE market (if that ever had anything to do with prices...), and if the lay-offs start in the oil patch, there might be a few "investors" that need to dump their holdings in a hurry. Could this be one of the nails in RE's coffin?, or at least a staggering blow to the head? Is the global economy fatigued enough that we might be seeing the beginning of the global recession that a lot of us are muttering about? Or, does it just mean that the mild temperatures are causing a diminished demand for oil? What about copper and other metals?
I'm thinking that a "perfect storm" is brewing.