“We are witnessing a generational bull-market in natural resources. The boom is due to the ongoing urbanisation and industrialisation of vastly populated developing nations in Asia and Latin America. And central-bank sponsored monetary inflation is adding fuel to the already raging fire. It is interesting to note that despite all the “end of the world” forecasts by numerous analysts, my preferred assets continue to power ahead.

Today, some highly intelligent economists are shouting “bubble’ and claiming that this uptrend built on the easy monetary policy cannot last forever. However, I am of the view that we are not in a “bubble” yet and this bull-run is due to the very real fundamental forces of supply and demand. Wherever you care to look in the commodities’ universe, you can see that supplies are extremely tight and failing to keep up with the rising demand coming out of emerging Asia.

In the business of investing, it usually pays to observe the market and one should avoid becoming fixated with pre-determined conclusions. After spending over a decade in the investment-management business, I have learnt never to fight the trend. And the trend for commodities and the emerging-markets is up. For sure, as night follows day, this bull will mature and then die. However, between now and judgement day, fortunes will be made by patient investors…”

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