The bull run in commodities is set to continue for at least another five years, offering long-only investors better growth potential than any other asset class, Dighton Capital Management has claimed.

Fears over the real value of money resulting from excessive quantitative easing and consistent devaluing of currencies by many countries will drive up prices of precious metals while growing demand from emerging market economies will raise prices of base metals, soft commodities and oil, Dighton stated.

Bonds and property are hitting headwinds while equities are set for a major correction toward the end of 2011 or early 2012, led by the developed markets, it added.

Alex Moiseev, principal and chief investment officer at Dighton Capital Management, said: “Long-only investors should just own commodities across the board. There is nothing else that is worthwhile out there. Equities in some emerging markets do offer potential but they represent unknown territory because of the political factors.”

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