HomeHome SearchSearch MenuMenu Our productsOur products

Is the worst finally over for commodities?

by , 01 May 2015

After seven rocky years, there are signs that things are turning around for commodities.

Since 2008, prices of commodities are down around 60%. Over the past year, they're down about 25%.

But change could be on the cards for commodities.

Read on to find out more and if you should start thinking about getting back in…

There is a hint of a recovery in commodities

Have a look at the chart below of the Bloomberg Commodity Index…

Chart of Bloomberg Commodity Index

The index weights are as follows: Energy 33.2%; agriculture 28.7%, industrial metals 16.7%, precious metals 16.5% and livestock 5.1%.

The index bottomed in March and has been slowly inching higher since. So have commodities reached a turning point?

Last month saw investor sentiment toward commodities reach an extreme low.

Sentiment hasn’t been at levels this low since 2001 and late 2008. And buying at those point would have been good times, Dr Steve Sjuggerud in Daily Wealth explains.

Time to buy commodities?

Historically, assets don’t reach a bottom until sentiment towards them is awful. With a hint of an uptrend that’s continued for over a month, the situation for commodities could be looking up.

Other assets, like shares and property, have done really well over the past few years yet commodities have languished.

It might be a bit early to enter into a long commodities trade. To be sure, wait to see if the rise continues. But the time could be nearing for the commodities bull to return.

So there you have it. Why the worst may finally be over for commodities.

*********** New release ************

No matter what your age or income!

Spend just 10 minutes a week, and you can pocket as many as 32 extra salaries a year, paid directly to you

It's so easy! And we'll show you exactly how.

Set this up now, and you could have your first extra salary in your hands in the next few days.


Is the worst finally over for commodities?
Rate this article    
Note: 5 of 1 vote

Related articles

Related articles

Trending Topics