Sep 26, 2013

The Commodity Super Cycle Is Probably Over

"There are a number of factors as to why the commodity super cycle is probably over. First of all, China is slowing down. Their growth rate might be as low as 6 or 7 percent. Additionally, we have a slow recovery in advanced economies and since there the monetary policy is going to be tightened, however, gradual. The Fed eventually is going to start tapering, would eventually go away from zero policy rates and that increase in short and long rates is going to soften commodity prices as well. The dollar is going to strengthen over time because economic growth in the US is going to outperform the one in other advanced economies. The Fed is going to exit faster than other central banks." - in Economic Times

Related stocks & ETFs: SPDR Gold Trust (ETF) (GLD), iShares Silver ETF (SLV), United States Oil Fund ETF (USO), Ternium S.A. (ADR)(NYSE:TX), ArcelorMittal (ADR)(NYSE:MT), Gerdau SA (ADR)(NYSE:GGB), Vale SA (ADR)(NYSE:VALE), Conoco Phillips (COP), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.