Commodities set for stronger returns

With rapidly rising demand for goods in developing countries, Matthias of Dawney Day Quantum believes commodities offer a rare opportunity for investment

The alarm bells started to ring when I noticed two erstwhile stockmarket minnows, Cairn Energy and Antofagasta enter the FTSE100. Then I saw President Putin prepared to risk the international business reputation of Russia, in order to regain control of Yukos, a major domestic oil producer in Russia. I remembered that President Bush was prepared to take the US to war in a far away land which is exceptionally rich in oil. And India and China are locked in deadly competition to buy oil producing assets to secure future supplies. They are both bidding billions of dollars for a stake in Yugans...