Commodities are back in favor for Roger Groebli, senior manager at ABN AMRO Bank Switzerland, due to a stronger-than-expected rise in demand from China.
"Demand was much stronger than we thought, in particular in the metal segment like copper. It went up quite nicely and we see that China is demanding more," Groebli explained on CNBC's "Protect Your Wealth".
Groebli, who had initially been underweight commodities, explained the decision to change his call on the asset class.
"We had lower growth, in particular from China, and obviously, looking back the past three months, we were wrong with this assumption," he said on .
Groebli said recent merger and acquisition activities also reflected optimism in the resources space.
"We saw that companies like Xstrata had acquired a stake in copper mining. This is interesting, it shows that they are very confident. Noble Group is strengthening its portfolio with an acquisition. So we really believe that there's more to come in the commodities sector and we want to be part of this rally again."
With regards to equities, Groebli is shifting funds back to China.
"For about one year, we had an underweight on China. We believe that China is back in the limelight, and therefore we allocate some money towards the Chinese stock markets. We believe that, for example, retail stocks in Asia will move higher."
Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."