| The recent decline in commodity prices resembles a downhill mountain biking expedition. The price drop has been so severe that we’ve seen a nearly one-sided market, with buyers largely absent in futures, commodity indices, and exchange-traded funds (ETFs).
As a result, many commodity hedge funds have closed and are returning capital, despite their ability to trade short. Indeed, we knew it was getting serious when the phrase “market correction” was slowly replaced by the word “carnage.” Yet, if you believe in the commodity super cycle – defined as the decades-long price movements in a wide range of commodities – then this shouldn’t have been entirely surprising...............................................Full Article: Source
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