15.12.2015 - Commodities are still no asset class to own
The commodities research team at Julius Baer has produced a 2016 outlook. The commodity super cycle is in its final innings and structural headwinds should ease but cost deflation and abundant supplies should keep a lid on prices. While lower commodity prices brought tailwinds to consumers in 2015, 2016 might see increasing economic risks in resource-dependent countries and industries. Abundant shale oil supplies warrant low oil prices for longer while soft currencies and structurally slowing Chinese demand growth should continue to weigh on metal prices. Gold is set to remain out of favour among investors given the outlook for sound growth, higher interest rates and muted inflation...............................................Full Article: Source
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