Sentiment is near an all-time low, yet there is compelling evidence to suggest prices will rise in 2016, delegates at the firm\u2019s annual investor conference were told.<\/p>\n
James Butterfill, ETF Securities\u2019 Head of Research & Investment Strategy, said: \u201cLooking at net futures positioning[[Source: Bloomberg, ETF Securities]], it\u2019s clear we\u2019re very close to the most bearish position in history. To us this denotes we\u2019re perhaps at peak bearishness. This may not be the opportunity of a lifetime, but it could be the opportunity of an economic cycle at the very least.<\/em>\u201d<\/p>\n Butterfill said prices have now fallen so far, leaving many commodities trading below their marginal cost of production, that global suppliers are finally being forced to cut supply.<\/p><\/blockquote>\n At the same time demand is likely to remain stable \u2013 at worst \u2013 and even experience a \u201csnapback<\/em>\u201d as cheap oil prices stimulate economic growth and boost corporate profit margins.<\/p>\n Butterfill said: \u201cMarkets have obviously taken leave of any fundamentals, and it\u2019s purely about sentiment where commodities are concerned. But sentiment quite clearly follows the price \u2013 and history shows that in an environment of rising rates crude and industrial commodity prices usually go up.<\/em>\u201d<\/p>\n Butterfill downplayed fears that the general economic slowdown in China could have a major negative impact on commodities.<\/p><\/blockquote>\n He pointed out that Chinese consumption of the \u201cbig four<\/em>\u201d metals \u2013 aluminium, copper, zinc and lead \u2013 is still growing at 8.5% per year[[Source: Bloomberg, ETF Securities]].<\/p>\n He said: \u201cA lot of the fears being discussed \u2013 China slowdown, Middle East tension, He said: \u201cThe worry is that aggressive cuts to capital expenditure might affect the future ETF Securities is a leading independent provider of exchange-traded products (ETPs) and an acknowledged innovator in the field, having created the world\u2019s first gold ETP. It offers investors direct exposure to a variety of commodity price movements through its classic ETPs and a growing selection of short and leveraged products.<\/p>\n","protected":false},"excerpt":{"rendered":" ETF Securities, one of the world\u2019s leading, independent providers of Exchange Traded Products (ETPs), believes commodity markets may be close to their most attractive ever after continued levels of bearishness.<\/p>\n","protected":false},"author":20,"featured_media":48720,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1483],"tags":[1655,1744,1651,2087,1746,2234,2021,2103,2068],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/48722"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=48722"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/48722\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/48720"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=48722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=48722"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=48722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\noverextended equity and bond markets, high-yield default risks \u2013 really aren\u2019t new.
\n\u201cThe only thing that is new is what happens after nine years of incredibly low interest rates.\u201d<\/em><\/p>\nResponding to concerns about dividend returns, he said some firms will cut dividends this
\nquarter while others are already cutting capital expenditure instead.<\/quote><\/p>\n
\ninfrastructure and the capacity of firms to produce. For me it makes more sense to own the
\noil than the oil companies.\u201d<\/em><\/p>\n