What is Supercycle theory?

A supercycle is defined as a sustained period of expansion, usually driven by robust growth in demand for products and services. Economic supercycles tend to produce strong, sustained demand for raw and manufactured materials, such as metals and plastic, that exceeds what commodity producers can supply.

How long does a Supercycle last?

They are expected to last much longer than business cycles, which, in Canada and the United States, have lasted six years on average in the post-war period. 1 Indeed, these supercycles are generally thought to take decades to complete a trough-to- trough movement.

What causes commodity super cycle?

Why are Commodity Prices so Cyclical? Commodity prices go through extended periods during which they are well above or well below their long-term trends. The upswing phase in commodity super-cycles occurs when unexpected, persistent, and positive demand trends contrast with typically slow-moving supply.

What caused the commodity boom?

Experts debate the causes, which include the flow of money from housing and other investments into commodities to speculation and monetary policy or the increasing feeling of raw materials scarcity in a fast-growing world economy and thus positions taken on those markets, such as Chinese increasing presence in Africa.

What is a crypto super cycle?

Source: Will Clemente/Twitter. A Bitcoin supercycle is a thesis suggesting that BTC will continue rallying and print fresh all-time highs instead of entering a bear market and having massive 80% drawdowns just like what happened during the end of the 2013 and 2017 bull cycles.

Are commodities in a super cycle?

Commodities supercycles are a relatively rare phenomenon, where commodities trade above their long-term price trend over a long period. Only four commodities supercycles have been identified since the 19th century, each tied to a transformational period of economic development.

How does trade affect Australia?

Australia is a relatively open, trade-exposed economy. For example, an increase in global demand for Australia’s exports, if not matched by an increase in supply, will result in an increase in the price of those exports. The ratio of export prices to import prices is called the terms of trade.

When did the current super cycle start and end?

The current super- cycle started in the mid-1990s and is now in its downswing phase. ƒ One potential driver of these supercycles is the interaction of large, un – expected demand shocks and slow-moving supply responses.

How long does it take for a supercycle to reach its peak?

No two supercycles are the same, however, and the length of the upswing and downswing phases can vary considerably from cycle to cycle. It can take anywhere from 5 to 17 years, for example, for the cycle to reach its peak and another 14 to 28 years to reach its trough.

Where does Mercer SuperCycle ride in South Australia?

Mercer SuperCycle is a five star fully supported multi-day and multi-distance charity cycling tour through regional South Australia raising vital funds to support country cancer patients and their families. Support us while we cycle around South Australia as part of the 10th anniversary and final Mercer SuperCycle.

How much money has been raised for Mercer SuperCycle?

Support us while we cycle around South Australia as part of the 10th anniversary and final Mercer SuperCycle. It’s official: ’10 years, 4 homes and $2.8 million raised to support people with cancer’. Over See More