Why commodities supercycle far from over as US and China recover

Nicholas Brooks, head of research at ETF Securities, said investors may only be mid-stage in a bull market for commodities.

This is primarily because the world’s two largest economies, China and the US, are recovering, he said. In the US, housing starts have improved and consumer confidence is high. Unemployment is still at 7.8% but the Fed wants to reduce this to 6.5%, he noted. Meanwhile, business spending and retail sales are up in China, while the government has loosened its fiscal stance. “It is a better environment for risk assets than the conventional wisdom would have you believe,” Brooks commented. “Commodities will do well as long as growth is rising, interest rates stay low and liquidity is g...