VanEck CEO Jan van Eck said investors should consider commodities due to “significant changes” involving international expansion.
Zhitong Finance App learned that Jan van Eck, CEO of investment management company VanEck, said investors should consider commodities due to “major changes” involving international expansion.
“The world economy is once again starting to grow,” van Eck said recently.
In particular, he pointed out that China, the world's second-largest economy, is the main driving force behind the expansion of the global economy.
“China has been a huge driver of economic growth... As of March, the Chinese manufacturing PMI index was positive.” “We are now in an expansion range... this has led to inflationary trading.”
VanEck has exposure to commodities ranging from gold and energy to copper. Its exchange-traded funds include VanEck Gold Miners ETF (GDX) and VanEck Oil Refiners ETF (CRAK). Since this year, they have risen 10% and 9%, respectively.
Van Eck emphasized that copper's upward momentum is a positive sign of demand. As of last Friday's close, this industrial metal has risen nearly 16% since this year.
“It's a great measure of global economic growth and energy prices. (They) may be a bit ahead of schedule, but they reflect that the world is growing.”
He also believes that US government spending is a favorable catalyst for commodity trading.
Van Eck said, “The US fiscal spending is so high, which has also led to an increase in global trade. So, that's why I love commodities because I think it's more than just a headline.”
By the close of last Friday, the commodity tracking S&P GSCI spot index had risen 10% this year.