There was no activity in either the Growth or Income portfolios during October. However, space in last month's column did not allow me to explain why I increased exposure to commodities in both portfolios during September.
To suggest that commodities are out of favour is perhaps an understatement. I cannot remember a sector being so unpopular. It is dogged by a variety of concerns including the outlook for global growth, China's slowing economy, the demand/supply disequilibrium and geopolitical forces in the Middle East and beyond becoming more influential. Some factors are well rehearsed - some less so.
Yet I suggest the worst of the bad news may be behind us. As overstretched companies, both large and small, disappear or restructure, the supply of certain commodities, such as some base metals, is beginning to tighten.