Tentative steps towards recovery the foundation of future investing

The commodities sector has endured quite a remarkable period since November last year, with demand for commodities rebounding strongly.

There has been an air of confidence we may have reached the bottom as far as economic woe is concerned. One of the main catalysts for the improved sentiment is the consideration of the enormous amount of fiscal stimuli worldwide, and in particular, in China. Here, fixed asset investment is at around 30% growth rate year on year. And, of course, this means demand for certain commodities will be necessary to sustain this growth. As a result, we have seen strong restocking in China for such commodities, as well as others that are important in the industrialisation process. Many commodities hav...