In EM, Beware Commodity Riches Without Policy Smarts

By Fernando Losada (pictured) and Alexander Perjessy of AllianceBernstein (NYSE:AB) Fixed-income investors often divide emerging markets into commodity exporters and commodity importers. We think this overlooks an important reality: commodity wealth is not the sole—or even the most important—driver of EM performance.

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The Party’s Over. Why Own Commodities?

Jon Ruff (pictured) and Seth J. Masters Commodity prices soared during the first decade of this century. But now the party’s over: new sources of supply are coming on line just as demand from China is slowing, leading to expectations of price declines. So should investors shun commodity-related investments?

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Is Inflation Really Gone Forever?

Recent movements in asset prices suggest that markets have forsaken any possibility of an inflation outbreak in the next decade. We believe that view is far too sanguine.

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Just a Sneeze—or Dutch Disease?

The changing dynamics of the commodity boom imply leaner times ahead for producer countries. Investors, however, should be wary of tarring them all with the same brush, as we believe such countries will offer different risks and opportunities as the cycle unwinds.

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Is There a Silver Lining to the Gold Price Plunge?

It’s been a volatile week for gold prices, which tumbled by the most in 30 years. Although gold is still not obviously undervalued, we think the recent market moves make stock prices of gold miners look attractive when compared with prices of the precious metal. 

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Feared Copper “Flood” More Likely a Trickle

Investors have turned bearish on commodities, particularly in the case of copper, where recent talk of a looming surge in new supply has sparked fears of a price rout. We’re skeptical about the copper supply-glut story and don’t think what’s happening in copper is a “canary in the coal mine” for the rest of the [...]

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