“We’re in a secular bull market in commodities, which started early in 1999.... I went back and looked, and the shortest bull market in commodities I could find lasted 15 years and the longest lasted 23 years. So, if history is any guide, this bull market will last sometime until 2014 and 2022.”
Jim Rogers, Commodities Investor
Index investing in commodities opened a new market to mainstream investors and changed the nature of the commodity markets, prompting them to move in line with stocks. It also helped spur huge rises in oil, metals, and food prices and pushed the dollar down.
In 2004, Gary Gorton, a professor at Yale University’s School of Management, and Geert Rouwenhoorst from Stanford,1 published a working paper. ...