(Bloomberg) The bubble may be about to burst for commodities pumped up by China’s efforts to reform its steel industry, presenting a compelling opportunity for investors to sell, according to hedge fund Academia Capital. While speculative buying has boosted raw materials from iron ore to zinc, those gains may reverse as growth slows into 2018, according to Ivan Szpakowski, chief investment officer at the hedge fund. Szpakowski predicted oil would be the “trade of the year” in January 2016, just before Brent prices slumped to a 12-year low and then doubled to end the year near $57 a barrel.
Shorting China Commodities ‘Very Compelling’ Says Hedge Fund
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