While Jeremy is treading carefully in the current market and closely watching economic data, a recession hasn’t come yet despite many economists, fund managers and investment banks having predicted it would have occurred by now for most of the past year. 

When he forms a solid view on a commodity’s outlook and an adjoining high conviction investment thesis about a company that has an attractive valuation – it will likely be added to the portfolio.

He is particularly bullish on copper, especially over the medium and long term. Last month’s sell off in the metal that is critical to the world’s renewable energy plans, where it touched a four month low, proved a worthy buying opportunity for the fundie. He cited China’s ability to provide stimulus, which they have already begun doing, and copper’s increasing cost curve that should provide price support. He is still looking for further weakness in some of the bigger names before significantly increasing the portfolio’s exposure.

Terra Capital isn’t limited to the ASX, which proves particularly advantageous when looking for exposure to certain commodities. In the case of copper, of which there are limited options on the ASX after the takeover of Oz Minerals by BHP, they consider that there are many more and much better priced opportunities available when looking at North America.