Bad news for resource-heavy Canadian markets? UK long-only equity investors Bedlam Asset Management have been warning of a commodities bubble for a couple of weeks now. Managing director Jonathan Compton gave a much-covered interview to Reuters in which he said oil, copper and some other commodities are vulnerable to a sharp correction. “You will see a fantastic unwinding of the speculative longs the moment rates move up,” he said. “Commodities most vulnerable will be the ones that are most widely held: copper and oil … and some very funny financials.” While the comments got a lot of airplay, the firm’s February bulletin gave a bit more context to the issue – a link with monetary policy tightening in China in the near-term. Link to the Bedlam_Monthly Investment Bulletin.