Miller: Commodity prices will peak within two years

Legg Mason's Bill Miller is calling time on the commodities bull market and says he expects prices to peak within the next two years.

Miller, chairman and CIO at Legg Mason, says in the past decade commodity price growth had enjoyed its second best 10-year rolling return for 200 years, and he expected it had now run its course. “Over the next one or two years you should see a peaking of commodities,” he says. “The key will be rate rises and it could take a few years, but commodities do look expensive on a historical basis.” Commodity prices have tracked Chinese and EM equities over the past decade, but a disconnect has now opened up with commodities continuing to soar in value while equities declined, he says. ...