28.08.2008 - Commodity party not over, says JPMorgan
From Investorschronicle.co.uk: Investors would be foolish to leave the commodity party before it gets into full swing, according to Ian Henderson, manager of the popular JPM Natural Resources Fund. The specialist commodity fund manager says energy and mining stocks are the cheapest they have been for a decade. He believes the fundamentals underpinning the sector are still sound, while infrastructure growth in emerging markets remains robust. "It is a mistake to assume that current volatility within the commodities sector is proof that the prolonged rally in commodity stocks is running out of steam," says Mr Henderson. "It is also misrepresentative to attribute it to a change in the basic fundamentals of supply and demand, which have historically resulted in such compelling returns for investors. In reality, it is the self-perpetuating irrational market sentiment in itself which is causing a sell-off for profit-taking purposes, thus provoking the fall in prices.".... Full Article: Source
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