Bloomberg- Paul Touradji, founder of the $3.5 billion hedge fund Touradji Capital Management LP, told clients a “buying orgy” in commodities had inflated prices and increased risks of a collapse.
Commodities “have all gone parabolically higher on frenzied money flow,” New York-based Touradji, 36, wrote March 10. “Unless that money flow continues ad infinitum, in which case prices would go to infinity, then the fundamentals had better be improving as quickly as prices have been, otherwise there is nothing else to keep the markets at these levels.”
Crude oil and gold rose to records today as the dollar tumbled after the Federal Reserve cut its discount rate at an emergency meeting and JPMorgan Chase & Co. agreed to buy Bear Stearns Cos. Commodities have rallied for more than six years as pension and hedge funds poured money into raw materials to protect them from the declining value of U.S. assets.
