Doug Cohen Comments on the Commodities Rally in the Wall Street Journal
Doug Cohen, Managing Director, Portfolio Management, commented on the market’s commodities rally in a February 26, 2018, Wall Street Journal article titled, “Commodities Rally as Investors Embrace Risk.”
The article’s author, Amrith Ramkaumar, reports that the S&P GSCI Index—a major commodities index—posted its tenth straight session of gains, an indication that investors have shrugged off recent market volatility and are diving back in to risky assets.
Raw materials such as oil and copper benefit from stronger economic growth because they serve as building blocks for everything from houses and office buildings to automobiles and smartphones. According to the article, some analysts think the fundamentals for investing in raw materials outweigh possible concerns about higher interest rates.
Athena Capital’s Cohen said the firm has increased its clients’ positions in gold and Treasury-inflation protected securities. “I actually do think this time it’s real,” he said of inflation rising.
The full article can be accessed here.
Doug Cohen is a senior member of the Portfolio Management Team and is responsible for delivering investment advisory services including asset allocation, portfolio construction, and other portfolio management-related services. In addition, Doug oversees the firm’s New York office.