Commodities: Will The Rally Continue?

We believe that commodity markets have further to run on the upside over the medium term, however we note several caveats to this view. Firstly, as we have been arguing for some time now, the rally in commodity markets will continue to be highly correlated to equity markets and as such, in the event of another leg down in equity prices, we would become very cautious on commodities. Secondly, given the stellar gains in commodity prices in recent months, they remain susceptible to sharp corrections and this will continue to be the case in coming months. Thirdly, a pickup in

To read the full article, please choose one of the following options: