The word around the financial markets is that stocks are hot once again. In particular, investors have rekindled their interest in commodity stocks. Due to the general trend of stocks increasing in price daily, many fear that prices will ease up and start balancing again soon, so now stocks, which were somewhat overlooked throughout 2017, make for a good addition to your portfolio as you prepare for a price correction on other assets.
The S&P 500 index (SPX) is at record high and is summarily 16% in 2017, more than twice the gains of the S&P Goldman Sachs. Analysts are now beginning to point out that commodity stocks, despite currently being outplayed by other assets, could take off very soon due to an expected rise of demand. Oil, in particular, is quickly making gains, thanks to the successful implementation of OPEC’s decision to cut down exports in order to ease the oversupplied market. In the metals market, while gold is being outshone by the US dollar, copper is enjoying three-year highs at the moment.
This is why it will be interesting to see a shift of interest from equities onto commodities, and the price developments that follow.
