Commodity prices have received plenty of publicity in both directions over the last 12-months with volatility reigning supreme. A few eye-catching headlines illustrate how cyclical in nature this space remains:
- Lumber prices more than doubled in the first 5-months of 2021 only to plunge by more than 70% since May.
- Similarly iron ore rallied 50% into May before plunging over 40% since.
When the world frees itself from the shackles of COVID we believe demand will lift in many pockets of the economy pushing commodity prices higher but as the likes of iron ore & lumber demonstrate investors must remain open-minded towards investing in the Resources Sector i.e. be prepared to take profit as things can and do change dramatically.
MM remains bullish the Resources Sector into 2022
