Many investment banks, with Goldman Sachs among them, say that the bull phase of the commodity super-cycle is over. Commodity super-cycles generally last 30 to 40 years. There is an initial 15 to 20 year phase where demand outstrips supply, and a later 15 year phase where supply outstrips demand.
In the first phase of the current commodity cycle, many metal, energy, and agricultural commodities have doubled in price since 2000. Over the past several years, however, prices have been, at best, range-bound. This has led to many market pundits declaring that the bull phase of the commodity super-cycle is over. So what’s causing prices to stay range-bound, and are there any compelling reasons to own commodity producers?…………………………Full Article: Source