Having staged a comeback this year, commodities could be in for another boost in 2017 on the back of the $1 trillion of infrastructure spending being proposed by US president-elect Donald Trump, says Architas senior investment manager Solomon Nevins.
Speaking in the above video, which continues Professional Adviser's Architas Advent Calendar counting down to Christmas, Nevins acknowledges a range of political and economic uncertainties faced by the commodities sector.
The behaviour of Opec and the US dollar, he suggests, could be as significant in the coming months as they were in the four years of underperformance seen before the asset class rebounded in 2016.
Nevins adds: "Another driver has been the Chinese economy or, at the very least, the perception the region is heading for a nasty recession with a sharp slowdown in construction and manufacturing activity.
"The US dollar and Chinese economic growth will continue to influence the direction of commodity markets and there's also the role of OPEC and fiscal stimulus to consider."
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