Which commodities are best placed for a 2016 rebound?

clock • 7 min read

A global price war in crude oil saw the price per barrel drop below $28 this month, as a supply glut and weak global growth continue to hammer the commodities sector as a whole.

The Bloomberg Commodity index was down close to 25% in 2015, nearly reaching its lowest level since the index was formed in 1991, and roughly 50% lower than its 2011 high. However, could a changing environment in the US help the sector rebound this year? Headwinds from a strong US dollar have been a key concern for investors in recent years, as commodities are priced in US dollars which makes them more expensive for holders of other currencies. However, with the US dollar likely to depreciate this year as its economy enters a new rate cycle, commodities could be the beneficiary. In...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Commodities

First Eagle Investments' Max Belmont: Gold as a strategic portfolio asset

First Eagle Investments' Max Belmont: Gold as a strategic portfolio asset

'Potential hedge for investors'

Max Belmont
clock 23 October 2024 • 3 min read
HL's Derren Nathan: Oil and gold prices have spiked as Middle East tensions reach boiling point

HL's Derren Nathan: Oil and gold prices have spiked as Middle East tensions reach boiling point

'$100 mark not out of the question'

Derren Nathan
clock 04 October 2024 • 4 min read
UBS AM launches carbon credit ETC

UBS AM launches carbon credit ETC

0.75% TER

Sorin-Andrei Dojan
clock 03 June 2024 • 1 min read
Trustpilot