Regal's Phil King is more bullish than ever on commodities

China is the world's overwhelming leader when it comes to steel production. And, by extension, it's the overwhelming leader when it comes to iron ore consumption. 

It's one of the great mysteries of today's markets, therefore, that the iron ore price be surging when China's property market is, in the words of Regal's Philip King, "a bigger bubble than bitcoin."

"There are some serious challenges for China at the moment," he believes, given an ageing population, bursting property bubble, and too much debt. 

Nonetheless, the iron ore price is what it is. And it's a bullish sign for commodities. 

"[So] we can't explain the strength of the iron ore at the moment, but I think it's very bullish for all commodities - the fact that in this rising inflation environment, with rising cost curves, commodities are holding up quite well."

Chinese property isn't the only bubble, however. Another one can be found in passive investing, and King believes this will herald a "happy hunting ground" for stock pickers. As for where he's hunting - small caps.