Is a new commodities boom upon us?

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So says Karen Moley:

Are we in the early stages of a major rally in commodity prices, as stronger global growth lifts demand, while the tumbling US dollar cuts prices for buyers outside the United States?

Looking at the historic relationship between the US equity market and commodity prices (measured by the closely watched S&P Goldman Sachs Commodity Index), it’s difficult not to see some merit in this argument.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.