Clem Chambers, founder of ADVFN, joined Tip TV to comment on the situation facing the commodity market.
Commodities in bear market trend
Chambers noted that the market was in a bear market trend move, with probability favouring continued downside. He identifies that around the world there is lots of bear market action, picking out China specifically.
Central Banks, political factors and US rate hikes dominate commodity markets
Chambers continues noting that he doesn’t believe in them when considering the level of central bank intervention. He feels that the fall in commodity prices has little to do with supply and demand but rather the increased impact of geopolitical factors, the involvement of central banks and the potential rise in US interest rates.
Chinese equity market a farce
Moving to China, Chambers believes that the Chinese equity market is a fake market, and that after the bubble, we are starting to see the inevitable crash. He adds the belief that Chinese government intervention in the market was at too high a level, and has resulted in further problems for China.
Gold downtrend to continue
Chambers finishes by highlighting that Gold is 40% off its highs, and he believes that it is hard to see gold not falling below $1000.