NEW YORK (TheStreet) -- I was talking with Jim Cramer today about the Citi note that claims an end to the commodity "supercycle" begun in early 2003. Ed Morse, the head commodity guru for Citi, now sees a fundamental pressure on the commodity sector and a multi-year bear market in the works.
I sat down with Jim and tried to debunk this idea for several reasons. First and foremost, there is still a financial balloon that continues to float higher prices of commodities, even though there is a temporary slowdown of growth, both here in the U.S. and in emerging markets.
Second, there is a continuation of "higher lows" that we see throughout the commodity sector, only excluding those commodities that never participated in the super spike action like aluminum and coal.
But oil remains well above the lows it saw in 2012 and will continue to do so and copper is still at $3.20 a pound and I think unlikely to go below $3. Corn, despite swelling harvests and enormous plantings is still trading well above $6.26 a bushel, hardly a historically cheap price. While the commodity sector might be in a holding area, I don't see any imminent bear markets.I talk more about this idea with Jim in the video above. At the time of publication the author had no position in any of the stocks mentioned. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV