Commodity prices aren't moving in tandem and this may augur well for global growth
It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us.
This opening paragraph of Charles Dickens’ seminal work ‘A Tale of two Cities,’ sums up where we are with the commodities cycle. The prayer of lower prices has been more than answered and now the world worries about what it actually means for growth. There can be too much of a good thing, I guess.
Let’s take a look at the trend over time:
Graph 1