The ups and downs of the markets have had little affect on commodities, which will continue to progress at the same pace for several years, this according to Andrew Cook, manager of the Canadian Resource Matrix.
“We are in the same scenario for over ten years and it does not change: the raw materials shortage of new supply meet demand from emerging economies, especially China,” says Cook.
“Year after year, these commodities have experienced record prices and record costs of exploration and development. We found no new source of supply capable of changing a truly significant amount of available reserves. Result: we will continue to break historical prices records.”
Asked about his investement philosophy, Cook said he looks for companies that have a “typical pattern of growth at the highest percentage.”
“We must consider the possibility of a new recession since the volatility index is still high.”
To diversify retirement portfolios, Cook recommends combining the raw materials to small cap companies whose volatility is higher, but ultimately can make some extra income.
“We need to pay attention to emotion. The volatility is not for everyone,” he warns.
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