It’s a vicious cycle, Bob — weakening EM economies due to lower commodity prices in many cases is leading to structural financial stresses. These countries can’t print unlimited quantities of money like the Fed, ECB and BOJ.

The risk remains that things will overshoot on the downside; beyond just a correction in commodities to some sort of default event or currency crisis. That’s especially worrisome now given the recent rebound in some EM’s, and the fact that many of those stock markets are even more absurdly priced against the backdrop of all-out economic contractions.

I tend to agree Peter — and have often said on this show that people cannot expect a broad-based commodity-rebound any time soon. PM’s should benefit as official reserves and, eventually, “scared” money from investors finds its way there. Longer term energy should do better. A real no-brainer is anything to do with FOOD.
But base metals will indeed pick up the rear, if not languish–especially if the Fed doesn’t quickly nip this strong dollar and the damage it’s causing in the bud. Weak economies and currencies in the EM’s could lead to default, and deflationary dominoes starting to implode.

For more :

http://nationalinvestor.com/377/commodity-supercycle-time-choose-consumables-reusables/