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Mike McGlone highlights that the Bloomberg Energy Subindex Total Return has delivered an approximately 70 percent one-year gain through September 29, making it the top-performing commodity sector in that period.
However, McGlone notes that the index is still unchanged from its 1990 high and is down around 90 percent from its peak in 2005, underscoring the long-term volatility and challenges in the energy commodity sector.
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McGlone has previously compared gold’s $5,600-an-ounce first-quarter peak to crude oil’s surge in 2008, citing strong trends in commodities in a prior report. He has also warned that central bank rate hikes following rising energy prices could trigger deflation in metals in separate commentary. His recent comments add to earlier analyses of significant swings in the commodity sector.