Personal Finance Reader

Carrick's Reader: Make way for the commodity bubble

The Globe and Mail

The best of the web on money, markets and all things financial, as chosen daily by Globe and Mail personal finance columnist Rob Carrick.

Make way for the commodity bubble High commodity prices are based on the same irrational thinking that caused the disastrous peak in technology stocks in the late 1990s, argues Ruchir Sharma, author of a new book called Breakout Nations: In Pursuit of the Next Economic Miracles.

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Sharma, who is head of emerging markets at the investment firm Morgan Stanley, has coined the phrase “commodity.com” to describe the current mania for oil, copper, wheat and such. “The strongest common thread connecting the dotcom and commodity.com eras is the fundamental driver of all manias: the invention of ‘new paradigms’ to justify irrationally high prices.”



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