Bloomberg unfurled an intriguing piece today suggesting that we could be on the verge of a new cycle of soaring commodity prices, perhaps as early as the end of this week. The story hinges on the theories of Soviet economist Nikolai Kondratiev, who was executed under Stalin's rule. Kondratiev's concept, which subsequently became known as “Kondratiev waves,” eventually gained traction within capitalist economies.
The idea has some merit. Currently, commodities are trading near local lows. At the same time, in its bid to curb inflation, the U.S. government is exerting almost every conceivable effort. If the analysts are on the money, we could witness an explosive surge in commodity prices over the next 15 years, starting, perhaps, tomorrow. This could divert the spotlight from AI technology back to the traditional mining sector.
It's a prospect that has certainly piqued my interest, particularly as I have stakes in several industrial and mining firms within my portfolio.
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