As a result, many investors have come to the conclusion that they have missed the trade. The truth, however, is that the bull run in commodities is probably still only in its early innings.

From a fundamental standpoint, commodities are still dramatically undervalued relative to equities. This suggests that the outperformance they have seen over the past two years still has plenty of room to run. There is also the crucial fact that capital flows in recent years represent a tremendous tailwind to the rise in this ratio which, due to the long lag time associated with these trends, will persist for years to come.