A New Commodities Boom Beckons When Pent-Up Demand Unleashed
- Fund sees consumption spike when coronavirus finally fades
- China seeking adequate stockpiles to guard against inflation
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The eventual end of the coronavirus pandemic is likely to herald a consumption boom, piling pressure on precarious supply chains and boosting raw material prices, according to the Merchant Commodity Fund.
“There’s a huge amount of pent-up demand in the consumer pocket,” said Doug King, head of the RCMA Capital-managed fund, which has assets of $170 million and returned 19.4% last year. “You could see a real surge in the market across all aspects of travel and consumption. I quite like the backdrop.”