From BI: The big news in the world of Wall Street calls
today was Citi's Edward Morse calling the end of the commodity Super-Cycle. The
argument, basically, is that the age of investment-led Chinese growth is over
(giving the way to household consumption-led growth) and that this shift would
have a profound negative impact on the rate of demand growth in all sorts of
industrial commodities. Add in booming supply in more areas (E.G. Iraq and US
oil) and you have the case for the end of the great commodity bull run. And
really this is huge given how long the commodity bull story has been a thing.
So should you listen to Morse? Does a bear s#i! in the woods? Well beyond the logic of his
call (which is spelled out in a note that's over 100 pages) he also has one
well-timed call to his name…..
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