Gold hits an all time high, food prices are soaring, and other tangible assets continue to rally. Many are left wondering if it is time to abandon commodities. The short answer is no.
We believe that the commodities sector is in a secular bull market. Though the lingering concerns over the pace of global economic recovery and the expectation that global growth is likely to weaken could lead to a softening in commodity prices, our view is that any softening would occur over the short-term. The extent of the easing is likely to be modest given the current tight supplies in many commodity products and the continued economic expansion ofemerging economies.