•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Beverly Chandler, Opalesque London

Alex Moiseev, principal and chief investment officer of $230m Dighton Capital Management believes that once all types of investment funds have more than 5% of their portfolios in precious metals, it would indicate the end of the bull market in commodities. He expects this prediction to fulfill within the next three to five years.

Talking to Opalesque, Moiseev said: “We are in the middle of the cycle of a bull market for commodities. Over 2011, precious metals will get good support from the institutional side and should give a good return, particularly in gold which fund managers are obliged to have in their portfolio.”

He is less bullish on black metals and copper, which he said would be supported by inflation alone but no further ongoing demand. Oil, Moiseev expects to hit US$ 200 a barrel because demand is very tight and demand is growing from China and other emerging economies.

Looking at CTAs, Moiseev added that the trend followers would enjoy good performance going forward but a bumpy path. “There will be deep corrections as after each run, each move up, there has to be a correction as people get scared and move their allocations.” Moiseev feels that this behaviour is typical for the middle of a bull cycle.

“The end of the bull market, the danger zone, is no later than three to five years from now” he says. And the precise date lies in spotting the best indicator: how much of the worlds’ investment portfoli......................

To view our full article Click here