Invast Australia's November Investment Committee Monthly Outlook has predicted commodities prices could be nearing a bottom, and due for a recovery in the first half of 2016. The company predicted that diversified stocks like BHP Billiton could rebound in the year ahead.
"We don’t see a sudden recovery, but we suspect that prices are near rock bottom levels and the second half of 2015 could be the base period in which they come back from,” the report said.
The company conceded that energy and bulk commodities had experienced "horror numbers", and that shareholders had been hit hard. But Invast said the fortunes of commodities companies could turn around in the New Year.
“Glencore’s panic selling may have been a sign of the bottom. The rally was purely ridiculous, we would be completely staying away from that type of volatility. But BHP in the mid-$20 range is a different matter. We spoke about it as an attractive exposure to consider next year at our end of month October webinar. Our team is watching price action very closely and we wouldn’t be surprised to see a slightly positive outperformance in earnings (considering market expectations are already low) in February,” the report claimed.
A major brokerage firm has claimed commodities could actually rebound in the year ahead.