Sudeshna André, Global Resources Product Specialist at Amundi Asset Management shares her outlook on commodities and commodity equities
Author : iFast Content Team
About This Video
1. Positive on commodities for 2011 due to improving outlook in developed countries, driving demand for commodities. Commodity equities should do well as these companies have sound financial situation and cash flow. Mergers and acquisitions are going to be a major driver
2. Key driver is supply. The demand story from the emerging countries is still there because of urbanisation and industrialisation in these countries. But supplies are constraint in terms of political risks, infrastructure, and accessibility
3. Key risk is economic growth with current price in oil continues to increase and supply issue is driving commodity prices
4. Bullish on copper, iron ore, gold
5. Immediate impact from political unrest in MENA countries as well as earthquake and tsunami in Japan is oil price and the immense need of reconstruction due to the massive destruction will be supportive for commodities
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