We’ve seen what’s happened with the decrease in gold. Will other commodities follow? If present trends in the bull market persist, the answer is a resounding yes.
A glut of rice, falling prices for metals and surpluses in cotton and sugar mean a slump in what “comes from the ground” so far in 2013, with equities trading at their highest valuations in four years when compared with commodities. The news adds to excitement over the current bull market’s run, but also to concerns over when (and how) it might end.
Bloomberg notes the ratio of the Standard & Poor’s 500 Index of equities to the S&P GSCI Spot Index of 24 raw materials reached 2.4 on March 6, the highest since February 2009.
“The S&P 500 is less than 2% from a record reached in October 2007 and has rallied 8.8% this year,” according to the news service. “The GSCI is up 0.3% in 2013 and 27% lower than the all-time high touched in July 2008.”