FTFM
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Investing in commodities
Content
Bull market stumbles but fundamentals remain strong
Investors asked themselves whether high prices were beginning to dent global growth and were thus putting the brakes on commodities demand
Big traders emerge from the shadows as demand grows
The air of mystery of the world’s largest commodities trading houses has for years attracted outside investors, magnetised by the promise of superior intelligence on what historically had been opaque markets
Equity or direct exposure: which is best?
For all the nuances and complexities that surround commodities, retail investors remain keen on simple ways of allowing them to gain exposure
No soft option for investors
Since investment in production has been negligible for the past 30 years, as investors focused on urbanisation and technology growth, prices of agricultural commodities have gone up
Silver lives up to reputation for volatility
Many retail investors were left feeling bruised after the silver market provided a brutal reminder of its notorious reputation for volatility with a sharp price correction
Properties that attract managers
Commodities are becoming a new asset class and the twin lures of performance and diversification form much of the attraction
Active strategies can enhance returns
Investors are being urged to ditch passive commodity strategies and opt for active management, which can make use of the different drivers of returns that commodities offer
Stewardship issues rise up agenda
Commodities investing raise environmental, social and governance issues and experts continue to question the effects of speculative investing on developing nations
Trees promise solid long-term growth
As an added bonus for pension funds looking to take into account environmental, social and governance factors, timberland offers ‘explicit opportunities’ as a sustainable investment
Debate rumbles on over merits of bets on the black stuff
The debate over how much speculators influence the direction of commodities prices rages on and the US Commodity Futures Trading Commission wants the issue to be addressed
