| One of my key macro themes for next decade is the bust unfolding in the commodity super cycle. There are three macro forces driving this end: China’s structural rebalancing away from commodity-centric and debt-charged investment-led growth; the moderate rebound in US economic prospects, modest rises in interest rates and US dollar bull market; and, oversupply rushing to market in all sorts of commodities.
That gives you the rather sad combination of falling demand, increasing supply and a monetary headwind given most commodities are priced in US dollars, the complete inverse of the super cycle conditions that have prevailed through much of the post-millennial period...............................................Full Article: Source
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