[Music] Commodity super cycles are near Decades-long periods of time where Commodities trade well above their Long-term price trend Genuine super cycles do not come around Often Going back one century only three or Four true super cycles have been Identified And each was tied to very Transformational periods Of economic development a one or two Year rally in commodity prices Is not a super cycle rather a rebound From an important event such as what we Saw after the great recession of 2008 to 2009 Two commodity super cycles have occurred Since the end of world war Ii the first started in the mid 1960s And lasted through the 1970s This super cycle was likely driven by a Collapsing us dollar High inflation and two oil price shocks Raw materials are almost always priced In u.s dollars so a weakening dollar Forces producers to adjust prices upward To offset higher production costs in Local currency The last super cycle lasted from the Mid-1990s Until the financial crisis in 2008 and Could be summarized in a word
Brick during this time brazil russia India and china or bric comprised about 40 percent of the world population and Were on a path Of rapid industrialization which Required an unprecedented amount of raw Materials Food and energy commodities super cycles Are best defined in hindsight So it will be years from now before we Truly know Whether we are witnessing the start of a New commodity super cycle [Music] You
