Commodities - The Revenge of the Old 'Political' Economy

The seeming paradox of rising commodity prices in the midst of an economic slowdown has been a source of concern for many, suggesting that commodity prices have diverged from the economic fundamentals of the underlying physical commodities markets. In our view, however, the current recent rise in commodity prices is simply the extension of the structural bull rally in commodities that is now in its ninth year, and the fact that the rally continues in the midst of an economic slowdown simply serves to highlight the fact that this bull rally is structural, not cyclical.

>> Commodities - The Revenge of the Old 'Political' Economy March 2008 [PDF, 323 KB]