According to Jan van Eck, CEO of VanEck, investors should consider commodities due to a “big change” related to international expansion.
“The global economy started growing again,” van Eck told CNBC’s “ETF Edge” this week.
He cites China, the world’s second largest economy after the USA, as the main driver of the expansion.
“China has been a huge engine of growth in the last year or two and therefore has had a negative impact on growth. The Purchasing Managers’ Index for manufacturing in China has now been positive since March,” said van Eck. “You have growth now. …So that leads to your reflation trade.”
His company has exposure to commodities ranging from gold to energy to copper. Its exchange-traded funds include the VanEck Gold Miners ETF (GDX) And VanEck Oil Refiners ETF (CRAK). They are up 10% and 9%, respectively, since the beginning of the year.
Van Eck highlights copperThe dynamics as a positive sign for demand. The industrial metal was up nearly 16% this year as of Friday’s close.
“It is a good measure of global economic growth and energy prices.” [They] “We’ve probably outdone ourselves a little bit, but they reflect that the world is growing,” he said.
He also sees US government spending as a bullish catalyst for commodities trading.
“Government spending is extremely high,” said van Eck. “That also leads to this global growth trade. That’s why I like Commodities, because I think it’s more than just a headline.”
At the close of trading on Friday S&P GSCI Index Spotthe goods from tracked crude oil To cocoais up 10% so far this year.
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2024-04-20 15:00:02
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