01.02.2016 - Commodities: The fall and beyond...
Commodities are at the vortex of the ongoing turmoil in the global financial markets. Stung by the strong dollar and worries over slowing Chinese appetite, commodity prices have plummeted and investors’ losses have piled up in the last few years. The world is now into its sixth year of a bear market in commodities. Will 2016 see the dust settle down? To answer this question, we need to understand the events that led to the current meltdown. It was the greed to make the most of a bull market in commodities that led to the creation of excessive supply in many metals in the early 2000s. Then, with a slowdown in China and rest of the world, the demand-supply mismatch in commodities increased...............................................Full Article: Source
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