Commodities Secular Bull Market May Last Another Five Years

While gold and other commodities have outperformed over the past decade, it may not be too late to invest in them. Based on the duration of prior long-term trends, it appears likely the bull market for commodities and commodity-linked assets will last at least another five years.

As the dot com bubble burst at the turn of the millennium it marked the beginning of the third secular bear market for stocks since the market crash in 1929. During a secular bear market in equities, the question for investors then becomes where to invest. The chart at right shows that for every secular bear market for stocks, there is a corresponding secular bull market for commodities.

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