If there is one area that divides opinion more than most it is commodities. Some investors think that we are entering a new bull market and that now is the perfect time to buy, whereas others are sceptical and remain bearish. Whatever your view there is no doubt that it has been a difficult time for the sector. The prolonged fallout from the global financial crisis coupled with the reduction in demand from China and a glut of supply has undermined the prices of many different natural resources. Over the five years to the end of October the Bloomberg Commodity Index, which includes energy, agriculture, and livestock, as well as precious and industrial metals, was down 39%, but it seems to have bottomed out in the last couple of years. |
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