Renowned investor Jeremy Grantham, Chief Investment strategist of Grantham, Mayo, and van Otterloo makes the case for investing in resource equities. He suggests valuations are hovering near historic lows relative to the broad market, and when resource equities have been cheap relative to the broad market historically, they’ve performed quite well going forward. Yet investors are wary of investing in commodity producers due to the commodity price risk and the always uncertain commodity outlook. He tells us that long-term investors willing to tolerate that shorter-term risk should strongly consider whether they have allocated enough to this exciting and unloved segment of the market.

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