Raw materials is the best asset for the investment at the moment - return on investment in this sector is nearly 12% in 2016. This is several times higher than the yield on the stock and bond markets.
According to Bloomberg Commodity Index data, the profitability of investments in raw materials accounted for 11.98% since the beginning of 2016. The index combines indicators on 22 types of raw materials, and investments in 15 of them were profitable. The bond markets yield, according to the Financial Times, is about 6%, the yield of the stock market in 2016 - more than 2%.
The commodity market yield increased by 19.6% from the beginning of 2016, demonstrating the strong start to the year since 2008. Snatch was made in the first place, thanks to a jump in prices for oil markets, gold, zinc and soybeans.
The rise of commodity markets dues to several factors. Firstly, the boom of shale oil and gas production in the United States has ended - against the background of relatively low commodity prices the largest US producers of shale oil (Continental Resources Inc., Devon Energy Corp., Marathon Oil Corp.) in March had decided reducing production by 10% compared to last year.
Floods in Argentina and drought in Brazil affected the crops of soybeans and corn, respectively, spurring prices on the markets of these commodities. Prices for zinc is growing against the background of the expected reduction of metal production in China by 6% in 2016, as well as in connection with the decision of Glencore cut production by one-third of zinc.
Bond markets, on the contrary, faced with a drop. According to the Bloomberg Global Developed Sovereign Bond Index, a minimum yield bonds had reached 0.62%, the lowest figure since 2010. The yield on ten-year Australian bonds reached a historical low of 2.15%, while Japan - approaching the renewal of anti-record in -0.135% (-0.125% is now).
Investors show a return of interest in the commodity markets In 2016. According to RBC Capital Markets, from the beginning of the year to April it have been invested $60 billion in the commodity markets. According to eVestment, in April, hedge funds investing in raw materials, raised $1 billion.
At the same time, some large investors continue to refer to the rise of the commodity market is skeptical. And what about you?
According to Bloomberg Commodity Index data, the profitability of investments in raw materials accounted for 11.98% since the beginning of 2016. The index combines indicators on 22 types of raw materials, and investments in 15 of them were profitable. The bond markets yield, according to the Financial Times, is about 6%, the yield of the stock market in 2016 - more than 2%.
The commodity market yield increased by 19.6% from the beginning of 2016, demonstrating the strong start to the year since 2008. Snatch was made in the first place, thanks to a jump in prices for oil markets, gold, zinc and soybeans.
The rise of commodity markets dues to several factors. Firstly, the boom of shale oil and gas production in the United States has ended - against the background of relatively low commodity prices the largest US producers of shale oil (Continental Resources Inc., Devon Energy Corp., Marathon Oil Corp.) in March had decided reducing production by 10% compared to last year.
Floods in Argentina and drought in Brazil affected the crops of soybeans and corn, respectively, spurring prices on the markets of these commodities. Prices for zinc is growing against the background of the expected reduction of metal production in China by 6% in 2016, as well as in connection with the decision of Glencore cut production by one-third of zinc.
Bond markets, on the contrary, faced with a drop. According to the Bloomberg Global Developed Sovereign Bond Index, a minimum yield bonds had reached 0.62%, the lowest figure since 2010. The yield on ten-year Australian bonds reached a historical low of 2.15%, while Japan - approaching the renewal of anti-record in -0.135% (-0.125% is now).
Investors show a return of interest in the commodity markets In 2016. According to RBC Capital Markets, from the beginning of the year to April it have been invested $60 billion in the commodity markets. According to eVestment, in April, hedge funds investing in raw materials, raised $1 billion.
At the same time, some large investors continue to refer to the rise of the commodity market is skeptical. And what about you?