June 9, 2011
Commodities surge to continue for decades
Blogs.Marketwatch.com
John Segrich, manager of the Gabelli SRI Green fund SRIGX says that sustainability of commodities will be one of the driving market factors for decades to come.
Global growth, which has put constraints on resources, has created a supply-demand imbalance, and while there will be times of volatility and setbacks, the commodities story is likely to have a long uptrend.
“China consumes 20% to 70% of every commodity on Earth,” Segrich said at the Morningstar Investor Conference in Chicago.
“Brazil and India are major consumers of commodities too, and those countries and the emerging markets nations are going through an industrialization that will take 40 to 50 years. … This is a major cycle, and we want to be exposed on a long-term basis.”
While sustainability of commodities is a big issue, Segrich was down on “renewables,” the solar- and alternative-energy stocks, where he said, “The business model doesn’t make any sense. They’re being driven by government subsidies, and subsidies are being cut while supply is being increased. … That’s not going to have a good outcome.”
Full story: http://blogs.marketwatch.com/thetell/2011/06/09/commodities-surge-to-continue-for-decades/
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