Commodities update

Commodity prices continue to be well-bid. They are only marginally lower than the highs they hit in mid-2008. I think this reflects a) strong global growth, and b) accommodative monetary policy in most major countries. I think this is bullish, because I believe that markets are still very concerned about the durability of the recovery that started some 9 months ago, and the markets are still very concerned about the risk of deflation. Rising commodity prices continue to suggest that these concerns are misplaced.