The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

A stack reclaimer with a pile of iron ore at the Rio Tinto Parker Point ship loading terminal in the Pilbara region of West Australia. A bear market in commodities has already begun as industrial activity in emerging economies has slowed, while a supply overhang remains.
A stack reclaimer with a pile of iron ore at the Rio Tinto Parker Point ship loading terminal in the Pilbara region of West Australia. A bear market in commodities has already begun as industrial activity in emerging economies has slowed, while a supply overhang remains.
(Ho New/REUTERS)

For metals and oil, the pain has just begun

Investors who are praying for a bounce back in resource stocks are likely to face frustration in 2014. Most top commodity strategists see a difficult year ahead for the “hole in the ground with a liar on top” sector.

It’s not that the problems facing miners and energy producers are anything new. The S&P/TSX materials index has shed 31 per cent this year, while the U.S. dollar-denominated S&P/GSCI industrial metals benchmark has retreated 1 per cent. But according to prominent strategists, there is still plenty of pain to come.