| Commodities tend to run in long cycles. The huge run-up in their prices, which peaked in 2011, has now degenerated into a rout. People who think that this situation will stabilize and turn around anytime soon are kidding themselves. China's pell-mell growth was the stimulus for the so-called commodity super-cycle , which began around 2002.
But the huge nation's expansion couldn't go on forever at a double-digit clip. China's deceleration to a 7% rate, while pretty good by Western standards (the U.S. grows at a 2% pace), is enough to squelch the commodity boom, and keep it squelched for a good long while. Not to mention, plunge stocks into correction territory , as we've seen lately...............................................Full Article: Source
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