The rebound of commodity prices is just beginning, in the previous months the rate falls too much, but because investors can big money on recovery, says Chairman Templeton Emerging Markets Group, one of the world’s most famous investors in emerging markets mark Mobius.
“We’ve all seen how commodity prices and shares of commodity companies fell too low, beyond reasonable values. Now we can expect them to move up, the percentage increase can be extremely large,” — said Mobius in an interview with Bloomberg.
Mobius noted that Templeton plans to increase investments in the shares of Asian commodity companies, without revealing, however, specific investment objectives.
The investor agrees that the commodity market will remain volatile, and thus excludes new drops of prices. However, in the long-term trend, he said, will be rising. “Many, though not all, of the company good for investment long term, and some even within this year”, — said Mobius.
The Bloomberg commodity index (in the calculation takes into account the quotes of 22 commodities, including oil, natural gas, copper, zinc, gold, sugar, coffee, cotton, etc.), falls in the beginning of 2016 to the lowest since 1991 level, in April of 2016 has continued to grow. According to Bloomberg, by the end of April, the index value increased in comparison with the beginning of the year by 6.5%. The Chinese CSI 300, the calculation of which takes into account stock prices of commodity companies, to mid-April, up from the January lows at 27%, but then lost some of the conquered positions.
However, not all experts believe that the movement of the quotes is enough to talk about the transition in the commodity market, to long-term growth. In particular, the head South32 Ltd. Graham Kerr explained to Bloomberg that prices of raw materials likely to decline again in the third and fourth quarters of 2016.
In early may, the price of oil on the ICE exchange dropped again. The cost of a barrel of Brent during the three days fell by about $3 (from $48 to $45), the price of a barrel of crude fell more than $2 (from $46 to $43,5). The decline in oil prices has followed the decline in commodities Bloomberg — from the beginning of may he fell approximately 2.7%.