CFAI book 4, p. 302. Paragraph 1 under “special risk characteristics” states…in periods of financial and economic distress, commodity prices tend to rise. However, last sentence of sub bullet paragraph 1 states…commodity prices tend to decline during times of a weak economy. Well CFAI, which one is it?
Financial and economic distress = 9/11, 87 stock market crash, Arab oil embargo, etc. Weak economy = times of recession/depression Both are correct
Thank you, I wasn’t reading it like that but when you put it that way it makes perfect sense.