Commodities Set to Break Into Bull Market After Four-Year Rout
- Bloomberg Commodity Index up 20 percent from January low
- Supply constraints from soybeans to oil and zinc lead recovery
Why It's So Hard for Commodity Producers to Diversify
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The four-year bear market that pushed commodities to the lowest level in a quarter century is coming to end as supply constraints drive a recovery in everything from soybeans to zinc.
The Bloomberg Commodity Index, which tracks returns from 22 raw materials, is on track to close more than 20 percent above its low on Jan. 20, meeting the common definition of a bull market. While the index has come close to breaking out of the bear market that began at the end of 2011, it has never sustained a rally long enough, until now. It’s still down about 50 percent from the high reached in that year.