Commodity supercycle?… The Economist

The Economist debates the commodity supercycle, here…

“Commodity bulls, led by Jeff Currie of Goldman Sachs, a bank, argue that longer term trends will support prices through the coming decade. “The pandemic itself is a structural catalyst for a commodity supercycle,” Mr Currie contends. In addition to a weaker dollar and the accompanying boost for commodities, the pandemic may have the effect of synchronising activity across some of the world’s biggest economies.”…

”Sceptics expect more muted growth. In the short term, Ed Morse of Citigroup points out, investors’ bets on copper are not supported by trends in supply and consumption. The Democrats’ slim majority in the Senate hardly guarantees that president-elect Joe Biden’s climate plan will be passed. “There is nothing on the demand side that is nearly as commodity-intensive as the first decade of the 21st century,” says Mr Morse.”