"Oil is a better bet than Treasuries as the Federal Reserve contemplates raising interest rates, according to Park Sungjin, an investor in Seoul."
While the Fed probably won’t act as soon as Wednesday when it concludes a policy meeting, U.S. interest rates may head higher in the coming months, said Park, the head of investment management at Meritz Securities Co., which has $7 billion in assets.
West Texas Intermediate crude oil is attractive following a 47 percent plunge over the past year, according to Park.
“Where should we look for the safe havens?” Park said. “It sounds crazy, but I think the commodity market is much better than any other, including Treasuries. The Fed is ready to raise rates, the commodity market has corrected already. I’m buying. We have a long position on commodities, especially WTI. You have to use energy.”
Following article: Crude oil will rally about 10 percent to $47.34 a barrel