"Nowadays clients are constantly asking me how they can best gain exposure to the commodities cycle - or, as some commentators would have it, the commodities 'supercycle'. However, there are two things that make me nervous whenever I hear this question. First, everybody always seems so upbeat on the subject, whether it be with regard to oil or materials, and this is rarely a positive sign. Second, in my experience, nothing in investment lasts for ever. What do the panel think?"
John Husselbee,north investment partners The recent commodity supercycle has been driven, primarily, by a surge in demand from the rapidly growing economies of China and India. The Chinese Dragon, in particular, has had an almost insatiable appetite for energy - specifically oil and gas - and industrial metals. This dramatic increase in demand has outstripped the existing supply and consequently driven prices up. This supercycle has applied mainly to the commodity categories of energy, industrials and precious metals. The 'softer' commodities such as coffee and cocoa, livestock and grains...
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