Three positive factors driving commodities

COMMODITIES

Bradley George, head of commodities and resources at Investec Asset Management, reveals the key themes behind his positive view on the asset class.

It is still early days for 2012 but so far the year of the dragon is living up to its name. The MSCI All Country World (ACWI) Index rose 5.8% (in US dollars) during January, and perhaps more importantly broke above its October highs – although it is still 10% below its 2011 peak. While 2011 was a volatile year for commodities markets, the long-term case for commodities is very much intact, given the significance of urbanisation and industrialisation taking place in emerging economies and the upgrade and replacement of infrastructure in the developed markets. For investors looking ahead t...