Commodities greatly outperformed stocks and bonds after the CRB Index hit a 25-year high in March, and it seems that the trend is likely to continue, according to a Reuters report by Nick Edwards, ``…their strength could intensify the downside risks for stocks and the global economy in the months ahead, money managers say… If similar patterns are repeated in the second quarter, the inflation risks that rampant rises in commodity markets stoke up in the broad economy could bring big trouble -- especially as they coincide with slowing company earnings and shrinking productivity gains.” Is this the beginning of the unfolding divergence???
The art of economics consists in looking not merely at the immediate hut at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups—Henry Hazlitt
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