| The sharp collapse in commodities continues to worsen. The Scotiabank Commodity Price Index for August 2015 has fallen by 10.5% month over month, and the bad news doesn’t stop there. The index is now 14% lower than it was in August 2009 at the height of the global financial crisis, and there are signs that commodity prices will sink even lower. Let me explain.
Now what? The key driver of the pessimism surrounding the outlook for commodities rests squarely with concerns over China’s economy. Not only is 2015 GDP growth forecast to be at its lowest level in over two decades, but a number of crucial economic sectors that support the demand for commodities appear to be caught in protracted slumps...............................................Full Article: Source
|