The Coming Commodity Boom into the 2030s

The Super-Cycle Bottom in Commodities is in. However, coming Recession will crush Commodities one last time before massive opportunities arise!

Commodities on the Cusp of a New Boom

After a decade of stagnation, commodities may be setting up for a major revival. Investors are starting to notice striking parallels between today’s environment and past periods that saw powerful commodity bull markets. From oil and metals to agricultural goods, many raw materials have been historically cheap relative to financial assets – but that dynamic is beginning to shift. A mix of economic forces and market cycles suggests that the 2020s and early 2030s could usher in a prolonged commodity boom rather than a short-lived spike. Let’s explore why history, valuations, and macro trends all point toward a potential “supercycle” in commodities.

Commodities vs. Stocks: Historic Undervaluation

For years, commodities have underperformed stock markets, reaching generational lows in value relative to equities. In fact, by 2020 the ratio of a broad commodity index to the S&P 500 had plunged to its lowest level in roughly 50 years[1]. This means raw materials have been the cheapest vs. stocks in half a century, an extreme imbalance that often precedes a reversal. Investors who remember the early 2000s will recall a similar setup: after the tech boom of the 1990s, commodities were dirt cheap, then went on to massively outperform stocks for about a decade.