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Valence Group Partner Peter Hall on how investors can profit from the chemical sector and subsectors.
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Make the markets but now I don't want to shift focus of talk about a brand new index that is being launched.
The chemical index it's called the balanced global chemical index and Peter Paul.
Balance group is the partner there and coming up with this idea 250 chemical companies.
Tell me how to make money on this what is it about -- it's all about.
Separating out what people describe as a single industry -- in many many different sub sectors that the industry is made up.
And the interesting thing about it is not just the people interest and chemicals but -- economists as a whole reason for that is.
These chemicals -- at every possible and market you can possibly imagine.
And that very early stage in the manufacturing presence about looking what's happening in chemicals sub sectors got a great leading indicator.
What's happening on the manufacturing floors of factories around the world so great about -- their way of looking at how the economy's overall.
Well liked it or hated their chemicals -- just about everything as you break it down into what some 35 sub sectors let's talk about the best performing sub sectors of the worst performers.
Well the best performer of the last five -- has been the first licensing six lines agribusiness that's exactly.
-- it's all about.
The increasing need for food the most -- need to be 70% more food than it does today and within the next twenty years.
It's a fertilized in a very very hot sector that's been a lot of M and a activity that's.
One of the on the performers.
But the other end of the spectrum -- -- the biofuels sector.
And I think that's really driven by the fact -- concern of whether or not as -- real government will to support -- fuel sector concerns of a biofuels taking product away from the food -- so that's fallen out of favor.
-- entire index become -- -- entire index but by looking at the index you can -- how different sectors.
Different companies in different sectors are really performing -- a much more granular.
-- -- And again you're talking about water chemicals pigments and catalysts adhesives things like that and we need that chemicals are basically everywhere we look.
MMA activity in this industry has been unbelievable -- does that slowdown here.
I don't think so I mean next -- chemicals industry is in very good shape companies have performed well thank cash rich.
That's serving global markets so even though there may be recent -- some of them and markets CEOs of chemical companies have a global perspective.
Most and are running pretty good business is performing well and I think we'll see a lot of M -- activity costs.
Peter Hall launching the new chemical index of balanced global chemical index every investor always looking for do things to invest in -- -- -- thank you Peter very.
