Ed Clark, CEO at Toronto Dominion Bank spoke at conference in New York today where he stated that the bank is assuming “dramatically lower” commodity prices in the long run.
If the world financial system is “over-inflating” prices as he put it, then we’re in a bubble. As bubbles don’t last forever, TD Bank is wise to begin planning for lower prices in order to protect itself from future losses.
His remarks are in stark contrast to the bullish predictions by market analysts who see prices going nowhere but up. If the head of a major international bank is weary of current prices, then maybe it’s time for you to review your portfolios…. Or maybe the analysts are right….What do you think?
Taking a look at this morning’s headlines:
US home foreclosures are up 57%
Oil is at a record high of $112.
Corn & Rice futures are at record levels trading in Chicago.
Now I don’t want to sound like Mr. Negative and scare you, but things aren’t exactly looking too good for the US Economy. The US Dollar stinks, interest rates are low (this is good for people with loans, but foreign investors like high interest rates), and commodity prices are rising.
The most important thing that people should now be paying attention to are JOBS.
