Wednesday, January 15, 2014

The super-cycle of commodities is NOT over, it's just not super anymore

Or at least is what The Economist says (here). Graph below shows a very long series for commodity prices.

Note that the cycle (super or not) is less visible than the trend (hints of Prebisch-Singer). At any rate, the fall in 2009 and the recovery and then slow fall after 2011 imply that the overall index is now higher than at the lowest point in the series, the late 1990s, and around the same place it was in the early 1950s.

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