Recently in a local financial paper it was said that some local Swiss Traders are stepping out of the soft commodities trade. Some banks have said that they have never even started that trade.

So what was the reason? Ethics…

Maybe it is a local Swiss thing, but many with money are very uncomfortable with the developing situation. I even heard whispers where a top level financial CEO has said, “folks this commodity trade has too much froth… Hint, Hint…”

I know I am uncomfortable with the soft commodity trade, but that is not new.

Why is this important? Today we had a rally in the American market and people are saying it is due to the Enron loophole. What if, it was a steady movement into equities and out of the commodities? The big players are not going to step out all once, but they will over time. Yes oil came back up, but I wonder if it is a new set of players who see this dip as a buying opportunity.

We shall see how this develops. Maybe we have reached the high water mark with the commodity trade. I know for the past week our investment portfolio has been moving solidly upwards indicating a definite shift in the market.