Commodities Companies in Emerging Markets Remain Attractive

Source:

Dr Mark Mobius, executive chairman of Templeton Asset Management, said in a market commentary commodities will remain an investment theme on the back of continued demand from emerging markets and relatively inelastic supply, although prices may come off their peaks. "Thus, commodity companies should remain profitable and constitute attractive investment opportunities," he said.

Commodity companies in emerging markets should remain profitable and represent attractive investment opportunities despite worries of high inflation.

Templeton Asset Management says its appears that emerging markets face higher inflation pressures than developed markets and although this development appears to be a concern, it doesn't believe commodity prices will sink to extremely low levels in future.

Dr Mark Mobius, executive chairman of Templeton Asset Management, said in a market commentary commodities will remain an investment theme on the back of continued demand from emerging markets and relatively inelastic supply, although prices may come off their peaks. "Thus, commodity companies should remain profitable and constitute attractive investment opportunities," he said.

Mobius said a second reason for commodity-related companies remaining an investment theme was because a "new model of capitalism" has emerged in natural resource companies in emerging markets.

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