The GSCI monthly chart shows the index price this month dropped below the 2009 low and hit a 12-year low. The raw commodity sector is presently experiencing its second-largest bust cycle dating back at least 40 years—second only to the big downdraft seen in 2008 and 2009.
The impact of this major bust in raw commodity markets is widespread and has just recently come to include a big sell-off in world stock markets. There are increasing worries about problematic price deflation gripping world economies, which in a worst-case scenario could push those economies into depression.
