Maarten Spek submits: The upswing in resource prices continues. From a fundamental perspective this is no surprise. As the US, Japan, and Europe pursue an unremittingly loose monetary policy, credit supply to the “real” economy is more or less stagnant. Therefore a lot of capital is available for speculation. In addition, growth rates (and the anticipated returns) in the emerging economic nations outpace those in the West, whereas the former consume relatively high quantities of commodities.
Because of the going private transaction completed last November – a transaction led by the chief executive and backed by Apax Partners – and because it has outstanding issues of debt securities, Garda World Security Corp. is in an unusual position: it’s a reporting issuer. Over the last month, for example, it has filed an annual information form and announced preliminary results for the quarter ended April 30, 2013.
Michael Johnston submits:Global X, the New York-based ETF issuer behind popular products focusing on equities of commodity producers and sector-specific China ETFs, announced today the latest additions to its ETF lineup.
The Economist recently published a Special Report focusing on developing country growth (see The World Economy – A Game of Catch-up for the entire special report). The report focuses on the shift in economic power from developed to emerging economies.
We are happy to present yet another guest feature by our by now regular contributor Dr. Sam Subramanian from alphaprofit.com:
Emerging Markets: Investment Choices and Risks
During the global recession, equities in emerging nations declined more than those in developed nations. From its high in 2007 to the low in 2008, the iShares MSCI Emerging Markets Index Fund (EEM) declined 67% compared to the 62% decline in iShares MSCI EAFE Index ETF (EFA).
The Burrill Report submits: AstraZeneca (AZN) has joined the fray of big pharma companies betting on emerging market growth as a key area of future success, saying it expects to generate double-digit growth in countries such as Brazil, Russia, India, and China, ultimately generating a quarter of its growth from such markets by 2014.
Hans Wagner submits:
Emerging markets, especially China, Brazil, India, much of Asia and other parts of Latin America will lead the rest of the world in economic growth. As a multi-year trend, this is continuation of one of the best investing themes from 2009. Demand for commodities such as copper and steel will be critical for this growth.