Wednesday, November 11, 2009

Coming Out of The Woods

One reason to believe the world economy is starting to get out of the woods is the rise in oil prices.

Oil prices has been hovering near US$80 for the past few weeks despite a stew of bad news like rising U.S. oil inventories and poorer than expected corporate results from companies. The main reason for the rise seems to be the weaker US dollar which makes it easier for foreign currencies to buy the commodity but oil prices are usually a good indicator of sentiment in the overall economy.

Guess it’s time for another bull run on Golden Agriculture on the STI.

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