Why JPM's Neil Gregson believes the commodities sector has finally troughed

This year’s third quarter witnessed a significant recovery in resource equities. Cyclical sectors strongly outperformed defensive sectors and MSCI Materials was the best performing sub-sector, although it is still lagging year-to-date. This supports our belief that, overall, the commodities sector has finally troughed.  From a fundamentals perspective, we have begun to see early signs of improvement, notably in the mining sector, with leading indicators turning upward, while valuations remain near multi-year lows. With commodity prices recovering, we should see an end to the two-year ear...