Reuters – Raw material resources will determine country rankings in the world economic pecking order in years to come as strong demand and limited supplies ensure commodity prices hold their upwardtrajectory.
Hedge funds say demand for the commodities that countries produce, plus demand for their stocks, bonds and currencies, will likely dominate market and investor psychology for at least another 10 to 15 years.
“We won’t be thinking of countries in terms of emerging or emerged but whether they have commodities or not,” said David Murrin, chief investment officer at hedge fund Emergent Asset Management.
Countries that will benefit from the raw materials windfall include Russia and Canada with plentiful precious and base metals alongside oil and gas.
“We are 15 years away from the peak … The last (commodities cycle) peak was in 1975 … Since then the system has mostly been consumer and technology driven,” Murrin said.
