Dwight Anderson, managing partner of Ospraie Management LLC, always keeps his eyes on commodities. Today he is focused on three major economic elements that will drive commodity prices: economic stimulus, interest rates and U.S. dollar weakness. He’s also keeping a close watch on the country that continues to drive prices across the commodity spectrum: China.
For all the talk about the effects of the Federal Reserve Bank’s stimulus efforts – inflation and fiscal debt woes – the value of storable commodities is getting remarkably little attention.
Dwight Anderson, managing director and founder of Ospraie Management, says the flood of stimulus money into the U.S. economy means investors need to consider holding storable commodities as a way to retain purchasing power.
A combination of a supportive monetary backdrop and demand from emerging markets has created an environment for commodities that encourages investment in storable resources. These include platinum and palladium – known as the platinum group metals – and cotton on the agricultural side.
Read the rest of The Long Look at Commodities at CME Group.