VANCOUVER (miningweekly.com) – Gobal equity markets have been extremely volatile in recent weeks, extending a frantic sell-off of US stocks, which culminated in the steepest plunge for the Dow Jones Industrial Average in six-and-a-half years.
While commodities were not spared from the rout, American multinational investment banking and financial services firm Citigroup says now is the time for investors to add positions in metals.
According to Citigroup, demand-led inflationary pressures are a boon for real assets like commodities, as they raise the cost of production and support higher prices, while they are bearish for assets such as bonds.
In particular, Citigroup believes that the solid top-down cyclical case for investments in hard assets such as commodities remains intact. Goldman Sachs Group shares Citigroup’s optimism, saying recently the environment for investing in commodities is the best since 2004 to 2008.
DoubleLine Capital’s billionaire bond manager, Jeffrey Gundlach, also forecasts that raw materials may be one of the best investment options as they surge during the late phase of the economic cycle.
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