Is the rally in resources real?

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Ole Hansen, Head of Commodity Strategy at Saxo Bank, believes one side effect of negative rates is that investors are being forced to invest in real assets. “Hansen says the most obvious example is in gold, however, he also says the trend is evident in oil, copper and even iron ore. “You can argue at this stage in the economic cycle are we really ready for a recovery in metals? Maybe not – but I think there could be other drivers at play here. I think the fact that we are having negative interest rates is opening up the eyes from an investors perspective that they should be looking at other assets.” In this video he looks at some of the catalysts behind the rally in commodities since the start of the year. &


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Graeme Holbeach

Low rates 'forcing' investment in real assets for years. Didn't stop commodity price falls.

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James Marlay

Very true Graeme. It is also true that markets can react to information that is seemingly already known sometime after it happens. For example the US rate rise in late 2015 couldn't have been more telegraphed yet it appeared to be the source of a great deal of volatility...

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