3 Stocks That Are Coiled Springs for a Commodity Supercycle
An economic supercycle is a business cycle with sustained economic expansion. A commodity supercycle is when demand continues to outpace supply and leads to strong prices for commodities like oil, natural gas, basic metals, and agricultural products. A commodity supercycle can occur for supply/demand imbalances even when an economic supercycle isn't active.
Strained supply chains and global geopolitical tensions are disrupting global trade and teeing up a potential commodity supercycle. If certain countries decide not to trade with each other, or dramatically reduce trade, that decision will severely impact a lot of businesses. For the U.S. and its allies, it's not just about how much oil and gas, or copper, or lithium, or semiconductors are the world, but rather how much supply exists from America's network of allies relative to demand.
Deere & Company (NYSE: DE), Aspen Technology (NASDAQ: AZPN), and Rio Tinto (NYSE: RIO) are three companies that are positioned to provide critical goods and services needed in a commodity supercycle. Here's what makes each company a great buy now.
Source Fool.com
