What’s is your outlook on Copper/Commodities

HI there,

You are correct in that the general consensus seems to be that we are entering into a bullish cycle for metal commodities. There are many reasons for this, but given the amount of money being pumped into the economy to drive new infrastructure, it would not be surprising. However, we've heard calls to this in the past and while we may be about to witness a bull run, there is definitive certainty that it the price of metals will rise as much as expectations.

Take a look at gold for example. All the fundamentals are in place to support a rising price - yet it is stuck in neutral. Yes, we agree that commodities are a cyclical asset and historically have moved along with the economy. However, unlike gold which we view as a hedge against uncertainty, the bullish case for these metals is reliant on a booming economy and an increase in spending. This makes them, riskier and more volatile.

My investment approach to these would be very similar to how i analyze gold stocks. I'd look for companies with strong history of execution, growing production, low costs, safe geopolitical areas and low debt profile. This should enable to the company to perform well even if the expected bull market doesn't fully materialize.

Mat