With all the talk of a commodities bubble bursting don't you find it interesting that unleaded gasoline hit an all-time high today?
There was no bubble. An overheated rally that was traveling on momentum, yes, but not a mortgage the house (if you can get financing, that is), forget to pick up the kids from school, buy commodities at any !@#$% price bubble, no.
What does it mean? My view is that financial assets are not the place to be and commodities have a long rally left in them. If steel stocks are soaring thanks to foreign demand then so, too, can commodities for the very same reason.
But even more than that, since commodities as we have seen can get whacked hard every once in a while, wouldn't you sleep better knowing you were preserving your wealth instead of risking it? Where are the muni-bond (short-term, of course) hawkers when we need them?