Is the commodity supercycle the next great investment opportunity, or the biggest threat to the current bull market? Lance Roberts breaks down the growing Wall Street narrative that commodities are entering a multi-year boom driven by deglobalization, underinvestment in energy and metals, AI infrastructure demand, and concerns over long-term dollar dominance.
But there’s a major problem with the thesis: commodity spikes are inflationary, inflation destroys demand, and higher commodity prices often strengthen the U.S. dollar instead of weakening it. We examine the reflexivity problem, the China demand issue, AI’s real impact on commodity consumption, and why the “dollar collapse” narrative may be overstated.
