Recent woes at London-based hedge fund Red Kite - whether truth or rumour - have taken the shine off a number of commodities, but the market jostling may be concealing a secular change in fundamentals. If so, investors would need to closely examine the implications for innumerable listed metal and commodity stocks.
Commodities in general cruised into a protracted bull market early in 2002, in parallel with the dollar's entry into a longer-term bear market. For years, resources stocks have been the leaders on global equity markets, based on robust world economic growth, China's voracious demand for raw materials, and helpful supply-demand idiosyncrasies within each commodity market, ranging from crude oil to uranium.
Read more at MoneyWeb.co.za
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