The term structure of the futures market only explains whether something is in abundant supply, whether demand is strong,
Theres no predictive quality from the Term Structure whatsoever.Dr Bernanke got this absolutely wrong several years ago when the term structure was the other way around where the nearby futures were at a huge premium and he said that indicated the prices of crude oil were going to fall and indeed prices of crude oil exploded to the upside.
A lot of people misunderstand what the Term Structure means. David Einhorn misunderstood it completely.
I want to explain to the public that the Term Structures of the futures does not predict where prices are going to go,....never has, never shall.
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