How does the current bull stack up?

Sources: Bloomberg and Wells Fargo Investment Institute. Daily data. 2020–current bull super cycle uses Bloomberg Commodity Index from March 18, 2020 to September 30, 2021. 1999–2008 bull super cycle uses Bloomberg Commodity Index from July 13, 1999 to July 2, 2008. 1971–1980 bull super cycle uses Reuters Continuous Commodity Index from October 4, 1971 to November 20, 1980. Super cycle = If you look at commodity prices over the very long term (hundreds of years), it becomes evident that they tend to move in overall bull and bear cycles, some lasting decades. These are super cycles.

Key Takeaways

  • Since 2020’s low, commodity prices have been on an incredible run. If we are correct that a new bull super cycle has begun, history suggests that there could be even more gains to come.
  • Keep in mind that past bull super cycles have not been straight shots to the moon. We fully expect to see dips, lulls, and pauses in commodity prices during the bull.