Corwin Asset Japan Points Towards Rising Commodity Prices as a Kickstart to Stock Price Increases

US economy reveals key data to indicate that the world's leading economy is on a stronger footing than most analysts expected at this stage of 2016.

As the global economy attempts to piece together after a dismal start to 2016, Corwin Asset’s Chief Economic Strategist believes that global equity markets will gather momentum on the strength of rising commodity prices.

Speaking from Cowin Asset’s Tokyo based Head office, Alistair Sanders provided his commentary on the year to date and beyond;

As we progress through 2016 we strongly believe that commodity prices, specifically oil will begin to rise. Once we see this being to happen, wider market equity will also begin to slowly increase in value

Alistair Sanders, Chief Economic Strategist

“Over the past fourteen days we have witnessed a stabilization of economic conditions, causing the fears of an economic slowdown to follow suit and settle. Taking the US economy as an example, current data strongly points towards a period of growth after the dismal end to 2015 and the volatile start to the current calendar year.”  

Suffice to say, investor confidence has taken a hit over the past eight months as a paradigm shift has seen investor capital move away from commercial and service based stocks towards economically sensitive sectors such as industrial commodities and energy production.  

“As we progress through 2016 we strongly believe that commodity prices, specifically oil will begin to rise. Once we see this being to happen, wider market equity will also begin to slowly increase in value. The combined effect of commodity and equity price increases will help to stabilize the wider economy, in turn providing analysts with a clearer indication for forecast,” continued Corwin Asset’s Chief Economic Strategist.

Commenting on Corwin Asset’s thematic approach to investment, Mr. Sanders continued to deliver own his short-term investment recommendations as the global economy continues to settle from the recent period of volatility.

“Globally diversified portfolios are becoming more difficult to manage effectively, mainly due to the wild increases of volatility. Our investment philosophy here at Corwin Asset dictates the belief that assets must maintain flexibility in order to liquidate capital during times of turbulence. We see it as a key factor to effective risk-management.”

Corwin Asset is a Tokyo based provider of asset management services, focused on delivering global wealth management solutions to private investors and their families.

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