Aluminium set to soar in 2008

China's growing demand and falling supply could push aluminium prices higher in 2008 û and smart indices may be a good way to take advantage of the trend.

Forget oil. Next year's hottest commodity will be aluminium, according to a computer programme at Deutsche Bank that has a formidable track record in picking winners in the commodity markets.

The rules-based trading strategy takes a simple investment idea as its base assumption yesterday's winners have a habit of becoming tomorrow's losers. Or as bankers say markets tend to revert to the mean. Based on an index of just six liquid commodities û crude oil, heating oil, gold, aluminium, wheat...

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