Released March, 2018
Commodity Bull Appears Well Rested to Rally vs. Stocks, Bonds
(Bloomberg Intelligence) -- The commodity bull is resting, down about the same rate as the dollar was up in February. On a stand-alone basis, broad commodities remain on a sound footing, with prices still quite discounted historically and favorable primary drivers -- demand vs. supply, a weakening dollar, strong global PMI and increasing inflation. Continued mean reversion in lowly stock-market volatility favors well-rested commodities. Long overdue to catch up to the broad market, the grain-fed agriculture sector should continue to supplant weak energy and extended crude oil.