| Investors should not be lulled into increasing their commodity exposure because of discounted valuations across commodities markets, with major headwinds poised to further disrupt returns this year, Kames Capital has warned. Kames’ chief investment officer Stephen Jones says while prices in some major commodity markets appeared to be showing signs of stabilisation, the fundamentals remained unfavourable for the sector.
“Now though, it would appear that both oil and copper have found something of a floor, and investors appear only too keen to buy into this, judging by inflows into ETFs. However, we remain sceptical. When you look through short-term factors for commodities, for example unrest in the Middle East and its impact on oil, analysis inevitably reverts back to supply and demand dynamics to dictate the price...............................................Full Article: Source
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