Time To Buy Commodities?

Latest GLI liquidity data highlights The recent drop in private sector liquidity across a number of economies suggests that money is starting to be diverted into a strengthening World economy. Ignoring the on-going problems in EM, which is stumbling rather than contracting, the faster pace of DM growth should begin to lift commodity markets. Given the huge underperformance of commodity equities in recent years, there may be an opportunity here. Certainly, this being an entirely 'normal' cycle in our view suggests that commodities are due a run. Provided that the dollar/ gold axis remains stable this year, commodity equities might be worth buying.