Commodity downturn signals cyclical shift - L&G

Julien Garran, head of asset allocation at L&G Investment Management, suggests while countries with high levels of basic product production have seen significant development over recent years as a result of higher demand than supply, that balance is now likely to shift in favour of value-added service industries as there is likely to be an oversupply of goods and commodities in the next three years. While it has been commodity prices such as oil and copper which have driven equity prices up and down sharply over the last six weeks, coupled with fears around global inflation, Garren points ...