Investors warned on commodities 'Buffalo Jump'

How will investors look back on Q1 2016? They will probably remember global markets suffered their worst start to a year in two decades, with indices including the FTSE 100 dropping into bear territory as heightened concerns about a China slowdown and tumbling oil prices hit blue-chip shares.

Against this turbulent backdrop, fund managers advised investors to ride out the crisis, which they said was being driven by fear rather than weakening fundamentals. Their advice proved well founded as markets rallied during the second half of the period with accommodative global monetary policies providing support, especially for beleaguered emerging market assets which are on track for their biggest monthly gains in over four years. Many investors have also taken this opportunity to rebuild their commodities positions, especially in stricken oil and mining shares. However, while ...