Commodities bull run set to continue

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Despite the recent corrections in the equities market investors should not be put off investments with exposure to commodities because these should continue to perform well for a number of years, when the recent volatility has subsided

Recent press coverage has been full of forecasts of the bursting of the commodity bubble. What we are actually witnessing is no more than a correction within a prolonged bull market. Markets do not go up in straight lines, and the current bull market in commodities and equities had done a pretty impressive job of going upwards only. At the very least commodity prices should be considered on an inflation-adjusted basis. This analysis tells us that most commodities are substantially below their real historic highs. For example, crude oil is about 80% of its all-time-high in real terms, but ...