Miller: Commodity prices will peak within two years

Miller, chairman and CIO at Legg Mason, says during the past decade commodity price growth had enjoyed its second best 10-year rolling return for 200 years. But he expects this has now run its course. “Over the next one or two years you should see a peaking of commodities,” he says. “The key will be rate rises and it could take a few years, but commodities do look expensive on a historical basis.” Commodity prices have tracked Chinese and EM equities over the past decade, but a disconnect has now opened up with commodities continuing to soar in value while equities declined, he say...