Back in early February, I penned an article about the growing calls of a commodities supercycle and my skepticism. “I may well be wrong but I don’t see an end to issues around China, Iran, and Syria to name a few. I do see continued geopolitical risks and issues causing friction in markets. I don’t see the USD getting much weaker in the medium-term, I see oil markets awash with oil and I do expect some social push back to say the least once the general person in the street begins to understand climate policy and its impact on the pocketbook. The yellow jackets might be out in force in the future…. So, I’ll go with a bit of a short-term commodities boom for now and adjust my position as we fly,” I wrote at the time. Now it seems, Bloomberg anyway is also growing skeptical saying “Money managers are trimming what had been the largest wager for rising commodity prices in at least a decade as stumbling economic reopening efforts force a reconsideration of the popular recovery trade. A recent bond rout raised worries over inflation and surging bulk shipping rates are seen capping any further upswing.” The Bloomberg… continue reading
Continue reading Supercycle Talk Cools. This article appeared first on CTRM Center.