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In a piece from Reuters that suggested investors find companies who can weather the storm amidst weak commodities prices, several analyst firms said that they haven’t yet given up on mining and metals. Some analysts are banking on positive forecasts and taking advantage of cheaper values now.
In a piece from Reuters that suggested investors find companies who can weather the storm amidst weak commodities prices, several analyst firms said that they haven’t yet given up on mining and metals. Some analysts are banking on positive forecasts and taking advantage of cheaper values now.
Didier Duret, global chief investment officer at ABN-AMRO Private Banking, told Reuters:
We are ‘overweight’ on commodities. We see a ‘silver lining’ and believe that China’s plans to boost infrastructure will have a positive impact on miners.
Similarly, Robert Parkes, equity strategist at HSBC Global Research, was quoted as saying:
We are overweight on the basic materials sector. We think that investors’ pessimism on China is overdone and believe that the stimulus measures being put in place in China will support growth in the country … The sector is cyclical and sensitive to a pickup in global economic growth. We expect China’s growth will hold up next year and global growth will accelerate.”
