It’s not all China’s fault. I’m referring here to the rout in prices of commodities, ranging from coffee to zinc, over not only the course of 2013 but much of the last three years. Another index of stocks whose fate is tied to commodities (the Morgan Stanley Commodity Related Equity index) is ahead 10.2 percent in the same period, just over a third of the 28 percent gain recorded by the S&P 500 in the same period. Of course, it’s inevitable that the slowdown in economic growth in China from the double digit rates recorded during the first decade of the new millennium would take its toll on demand for commodities ranging from aluminum and copper for industry to foodstuffs for the emerging middle class.
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4 Risks That Cloud the Outlook for Commodities