Are we in a commodities supercycle? Michael Townshend, Piet

Are we in a commodities supercycle? Michael Townshend, Piet Viljoen discuss


Are we in a commodities supercycle? Michael Townshend, Piet Viljoen discuss
Michael Townshend is the portfolio manager at Foord Asset Management. Many market commentators are saying we are in a supercycle for commodities. Townshend joined the BizNews Power Hour and explained how the last supercycle came about in 2005. Townshend, along with co-host Piet Viljoen, discussed whether there are in fact any parallels between the previous supercycle and the demand for commodities occurring now. – Nadya Swart
Mike Townsend on the last commodities supercycle in 2005:
There’s no agreed definition of what a supercycle is. My interpretation is that it’s a sustained period of longer than 10 years where you get constantly rising commodity prices, and generally that rise in commodity prices is driven by a structural change in demand. And I think what happened in the early 2000s was that, from the early 90s, we had a significant population shift in China. And that was where you had, let’s say, six, seven hundred million people who moved from the rural areas into the big cities, and the cities had to, first of all, prepare for that massive influx of people. And you had a massive infrastructure boom. Just think of the amount of apartment blocks, etc., that have to be built to accommodate all of those people; the airports, the railway lines, the roads, etc. that have to be built to accommodate what was close to 10% of the world’s population.

Related Keywords

China , South Africa , Australia , United States , Chinese , America , Nadya Swart , Michael Townshend , Mike Townsend , Piet Viljoen , , Foord Asset , Biznews Power Hour , South America , சீனா , ஆஸ்திரேலியா , ஒன்றுபட்டது மாநிலங்களில் , சீன , அமெரிக்கா , நாடிய ஸ்வர்ட் , மைக்கேல் டவுன்ஷெண்ட் , மைக் டவுன்சென்ட் , தெற்கு அமெரிக்கா ,

© 2025 Vimarsana