Finding value in commodities in all market cycles

The BlackRock Natural Resources Team looks at how investors can find value within different commodities at different times.

Accurately predicting the exact movements of market cycles can often only be accomplished by those with oracular clairvoyance. When it comes to commodities, however, regardless of an economy’s stage, there will usually be a commodity story that plays well on the current market. That said, there are three cyclical tiers that largely influence where value is to be found within these assets. These are the seasonal cycle, the business cycle and the long-term global structural growth story, each of which provide opportunities for value within different commodities at different times. Cycle...