I previously asked whether the next bubble will be in commodities. Yves Smith has chimed in on this discussion over at Naked Capitalism in light of a recent article in the Telegraph titled "Fears of a Commodity Crash Grow." One excerpt from Smith:
[The author of the article,] Evans-Prichard [,] is not saying that commodities will go into a long-term decline. However, given a 20% runup in many indices in a mere two months after a 30+% increase last year, some observers deem the market to be overbought and due for a correction. Evans-Pritchard points out that if you believe that the US and Europe are going to enter a recession (insiders believe that European financial institutions will soon see the kind of stress their US peers have suffered), Chinese demand isn't strong enough to justify continued robust prices (ex agriculture).
As parting food for thought, I have posted below two graphs of the commodity-tracking CRB Index.