Thursday, December 18, 2008

Commodities outshine equities in the year 2008

Date : Dec-18-2008 17:57 New Delhi: During the whole year of 2008, where equity market lost more than 50%, Commodity market substantially outperformed equities in 2008. According to ETF Securities, the equity market fell drastically in the wake of the credit crisis. The DJ All commodities Index remains high at 14% and 107% over 5 and 10 year horizons, the firm told in its Commodities Review 2008 report. On the equity front, the S&P 500 is decline at 7% and 11% over the last 5 and 10 years respectively. The bullion, Gold has capitalized strongly on increasing risk aversion over 2008, up by nearly 37% and 18% in the terms of GBP and Euro respectively over the 12 months to November 2008. Gold is flat in USD over the same period, despite nearly 13% appreciation in the USD value.

Overall, the year 2008 is worst hit by the financial crises across the globe. During the first six month of the year strong emerging market demand, supply bottleneck and significantly rising investor demand pushed the prices of many commodities to historically high levels.

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