May 18, 2023

6.21 Is The Commodity Goose Cooked? | Nucleus Investment Insights

54 minutes

In November, China issued a sweeping directive to rescue its property sector. At face value, it was a major recalibration of its property crackdown.

There are two ways to read the string of announcements:

China is starting down the “whatever it takes” path. The current policies may not be enough, but they are a sign that China will keep adding more stimulus until the problem is fixed.

The plan does not change the fundamental demand for new construction. For the most part, you can categorise the elements as either (a) directives to various banks to lend more to developers, mostly focussed on completing existing projects (b) reduced debt constraints or rules on individuals buying houses. The plan is to avert catastrophe rather than return to the old normal.

The stock market/commodity traders assumed the first was true. We suspected the second.

Nothing is more important in commodity markets than getting this call right.

Join us in this investment podcast as Nucleus Wealth Chief Investment Officer Damien Klassen, Chief Strategist David Llewellyn-Smith and Senior Financial Adviser Samuel Kerr look deeper.

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Nucleus Wealth is an Australian Investment & Superannuation fund that can help you reach your financial goals through transparent, low-cost, ethically tailored portfolios. To find out more head to Nucleus Wealth Website.

The information on this podcast contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Damien Klassen is an authorised representative of Nucleus Wealth Management. Nucleus Wealth is a business name of Nucleus Wealth Management Pty Ltd (ABN 54 614 386 266 ) and is a Corporate Authorised Representative of Nucleus Advice Pty Ltd - AFSL 515796

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