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Commodities funds for the reflation trade

Despite a recent surge some commodities still have structural tailwinds
Commodities funds for the reflation trade
  • Long-term demand for commodities looks strong
  • Funds can provide diversified exposure to these assets

Commodities have long been out of favour with investors but have had a strong run recently, raising questions as to whether we might be at the start of a new commodities supercycle. While many investors remain cautious, there are structural reasons why some commodities could continue to do well.   

In the short term, as economies recover from lockdowns this should boost demand for industrial commodities, including metals, oil and gas, although much good news looks already priced in. 

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