Friday, March 28, 2008

Commodities: boom or bubble?

With commodity prices already at record highs, many people are predicting the resources boom is a bubble ready to burst spectacularly. The commodity sector is notoriously cyclical, and the time to buy is at the bottom of the cycle. We are surely closer to the top of the cycle than the bottom, traditionally seen as the time to sell.

But there are plenty of counterarguments, most of which focus on the insatiable Chinese growth story.

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