Commodities bear market just getting started

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The BCOM index recently broke support and would look much worse if it contained iron ore and coal.

Now BCA has downgraded commodities:

According to BCA Research’s Global Investment Strategy service, the next US recession will not be particularly deep. However, our colleagues do not buy that structural imbalances are so slight that the US economy will avert a downturn altogether. 

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.