Market Watch with Tom Waitt

January_12th_2011.mp3 Half Empty, or Half Full?    Is the glass half empty, or half full? Commodity prices have soared over the last several months approaching highs set over two years ago.   CRB Index (Click For Larger Picture) Soaring commodity prices have the media and market pundits warning of soaring inflation. Many analysts warn that the current easy money policy by global central banks will devalue currency and push commodities including food stock to levels unaffordable by many already unemployed. However bleak things seem, there is often another side to the story. Volatility usually goes to extremes in markets; the last time commodities measured by the Commodity Research Bureau Index known by the CRB Index peaked in 2008 it rapidly fell 36%. Oil went from its peak of $147.50 a barrel in July 2008 to $33.20 by January 2009. Gold also retreated 34%. Volatility is evident over the 64 years shown and as we reach extremes we should be aware the glass is often