Commodities bull run ‘still has legs' post sell-off

The bull run in commodities is set to continue, despite the recent sell-offs and mounting fears some assets in the sector are overheating, according to asset allocators.

Managers and strategists including Schroders’ Virginie Maisonneuve and Barings’ Andrew Cole are sticking by their commodity positions in the view the market has further to rise. They have shrugged off concerns a speculative bubble is forming, as commodities clawed back some ground last week after heavy losses which saw precious metals fall as much as 30% and oil dip below $110 a barrel.  Maisonneuve and GMO Investment Management’s chief strategist Jeremy Grantham said the temporary blip is a buying opportunity in an environment where managers are trying to protect assets from soarin...