Catching Market Waves

The recent plunge in commodities prices has investors wondering whether a major bubble has burst. But was there really ever a bubble? It is true that since their lows between 1998 and 2001, commodities and especially industrial commodities have been on a tear. Between 1998 and early 2006, crude oil rose from $11 per barrel to over $70, copper from 60 cents per pound to over $4, nickel from $5,000 per tonne to over $20,000, while gold went from $255 an ounce to over $700. But before deciding that the commodities bull market is over, investors should consider the following: commodity-price...