From Moneymorning.com: With oil off more than 20% from its July peak, and the Reuters-CRB Continuous Commodity Index down 19% from its June high, traders are betting that commodities have entered a bear cycle with much further to fall. But it is much more likely that commodities will enjoy another “bounce,” with many of them revisiting record levels before a true downturn sets in.

Smart investors will take advantage of this bounce. In the long run, commodities prices are likely to deflate. Even for oil, new supplies exist and are economic at prices well below those currently prevailing. For agricultural and other “soft” commodities, it’s mostly a matter of planting new land and waiting for the crop. …. Full Article: Source