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Chart: U.S. Commodity Index Recoveries

Of the 20 US economic cycles since 1914, the current one is the strongest recovery in commodity prices on record at this stage: it eclipses the two 1970s cycles largely due to the spikes back then occurring beyond year three of the 1970- and 1975- expansions (and also has a broader commodity composition beyond energy).

In other words, this is not your parents’ or grandparents’ 1970s inflation shock: it is way worse (for now).

Source : Deutsche Bank

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