Commodities in middle of rare 'super-cycle'

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Commodities should be on every investor's wish lists as the sector is in the middle of a ‘super cycle' that occurs only once every 50 years, according to BlackRock Merrill Lynch.

The firm says the cycles are driven by huge structural changes in the global economy – such as the European industrial revolution – and that strong growth and industrialisation in countries such as India and China has signaled the start of another. BlackRock says the sector is flourishing as a result because of strong commodity demand and muted supply growth. In addition, the company says merger and acquisition activity has the potential to further enhance performance. The firm says stockpiles of many metals are at their lowest levels for a decade, while price/earnings ratios of many ...

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