Industry overcapacity may lead to tight prices

The basic industries sector of the North American market is plagued by overcapacity but there may be some short-term opportunities due to rising demand for commodities. Rupert Howard, US fund manager at Aberdeen Asset Management, is negative on the sector as a whole. He says basic industries are generally not attractive. "We have zero exposure to them. The sector has declined to under 2% of the S&P 500. Basic industries have been among the most consistent destroyers of value and the long-term picture is negative as they suffer from overcapacity and lack of pricing." However, Stephen Caldw...