Sunday Spectacle CXXII

One-hundread-year commodity price index

(source: "Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever," Jeremy Grantham. GMO Quarterly Letter, April 2011.)

Haven't read the article yet but I don't quite share the paradigm-shift argument. I think a lot of it is based on strong perpetual growth from countries like China and India—I don't buy this view—and it's also not obvious that the market hasn't priced in the future growth already (after all, commodities have been in a bull market for over 10 years now.)

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