The new commodity super-cycle is upon us. One of the big factors that should fuel it in the coming years are the big infrastructure projects. Both the US and Europe are planning to spend huge sums on new infrastructure. Europe is even going so far as to turn the tables and copy China. A new Silk Road project will both stimulate the economy and increase Europe’s influence. All of these projects will require quantities of raw materials that are simply not available at the moment.
“This should provide the backbone for the bull market in commodities for the next few years. Commodities are also a very good inflation hedge and should be considered for that reason as well.”