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Copper: worth its portfolio weight?

A barometer of long-term commodity demand, copper prices are more than three times the level of a year ago, but forecasts vary widely. How are portfolio managers reacting to the uncertain price outlook? By Kathleen Kearney

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Copper and other base metal derivatives are forecast to attract greater interest from funds in the coming 12 months, despite signs that the four-year bull run in metal prices is losing steam amid poor performance at many funds. Still, portfolio managers say sustained real demand growth and above-average price volatility should make copper and other base metals an attractive investment in 2007.

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