All Price Cycles Eventually Have a Downside

With the worldwide building boom underway, Hanson (HAN), a provider of building materials like sand, gravel, cement, bricks and more, is rewarding investors. Since January 2003, HAN has more than tripled in price.

Its current upside is very steep and investors should be reminded that all commodities are cyclical so they do not go up forever. The HAN price chart shows two completed cycles before 2003. Even though the upside of the current cycle is sending the stock price to all-time highs, at some time this cycle will move to the downside. So let the buyer beware.

Posted April 29, 2006.