With crude oil prices below $40 a barrel and still falling, it's a courageous trader who wants to boost his commodity exposure. But for those that do, ICBC Standard Bank has a novel suggestion.
Demetrios Efstathiou, head of trading strategy at the bank, recommends investors look at bonds from major commodity exporting nations — particularly in Central Asia.
"As commodity importers appear safe but expensive, we think that for value, investors have to look at cheap commodity exporters. It is indeed a brave proposition to invest in them when commodity prices are still falling but a gradual accumulation of positions makes sense, especially among selected oil producers as oil prices are expected to bottom out next year," the London-based strategist said in a report on Monday.