It was also hard to refute the suggestion that the commodity cycle would keep rolling.
The stock is pricey at a 17 multiple but would pay off if this commodity cycle lasts until Shanghai is built out.
While iron ore, metallurgical coal, copper, and crude oil faced temporary supply side disruptions that boosted prices excessively, the longer-term, commodity super cycle remains intact.
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Instead, gold has behaved more as a risk asset, bought by momentum investors who like its recent trend and believe in the commodity bull cycle.
Stock markets sold off, a Credit Suisse report concluded that the commodity super-cycle underpinned by China has drawn to a close, and economists worried about the implications for the already slow economic recovery in the United States.
The difference will become even clearer when commodity prices fall and the economic cycle turns.
Stabilisation funds, such as Chile's Economic and Social Stabilisation Fund, smooth out the economic cycle by accumulating revenues from commodity exports when prices are high, and disbursing them when prices drop.
Not even oil, the archetypal industrial commodity, quite conforms to the super-cycle theory.
The wartime cycle usually begins after a long period of commodity price deflation accompanied by an economic depression.
Furthermore, commodity prices are rising at an early stage in the economic cycle.
It is a gauge designed in collaboration with Pring Research to reflect its proprietary investment strategy, which tactically allocates among stock, bond, commodity, and cash segments based on the phase of the economic business cycle.
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If history is any guide, commodity booms can last 15 to 20 years and we are 10 years into the current cycle.
Technology markets historically go through a natural cycle of evolving from artificially high prices during the early adoption phase to a commodity based price during its mainstream buyer phase.
Samsung wants to reduce its reliance on commodity semiconductors, or DRAMs, whose profits vary wildly depending on the ups and downs of the product cycle.
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