How to Profit From Industrial Metals: Strategist
Investors who want to capitalize on the coming global economic demand should put their money on metals, said Michael Widmer, metals strategist at Bank of America-Merrill Lynch.
“A lot of the industrial metals have been used as a reflation trade during the first half of the year,” Widmer told CNBC.
“There was a lot of positioning ahead of the economic recovery and [we've] seen some amazing price gains.”
Although investors should be slightly cautious for the moment as there may be a "brief breather" coming through in the industrial metals, there will be a demand boost in 2010 with the reacceleration in the global economy, according to Widmer.
He said he is most bullish on copper and platinum , whose prices will continue to rise.
But he believes gold will not perform as strongly as other industrial metals, while fundamentals remain “exceptionally bad” for aluminum .
“Copper has seen a tight supply over several years—producers have delayed projects, cut production so you’re going to move out of the recession into an environment where demand is going up,” said Widmer.
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Disclosure:
No immediate information was available for Widmer or his firm.
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