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Trend 4: Awakening of the Commodity Bull

Investment Outlook – Trend 4, Published Mar 16, 2017

Commodities exited a painful bout of demand and supply rationalisation last year. Going forward, China and Trump’s fiscal stimulus will remain drivers of incremental demand. The Boom (2002–2008) Commodity cycles generally peak when high prices foster greater production and lower demand, eventually leading to a surplus that puts downward pressure on prices. The 2002-08 cycle…

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