With the primary purpose of selling products dedicated to mining or digging, Caterpillar (CAT) might not be too favorable to investors with the decrease in price of commodities. However, such a situation may not be that unfavorable to this company.With a recession looming illustrated by corporations stopping some of their production to accommodate the eventual decreasing demand as represented by the waning job offerings, commodity prices will reflect such a change by having significant decreases in terms of price. When prices of commodities such as zinc, copper, nickel, or aluminum go down, there becomes a serious issue of the simple theory of supply and demand. The reason for this drop should be attributed to the availability of products remaining in the market centered on that commodity. Read more...
