Commodities: Major Investment Focus

Despite the ongoing financial crisis and heightened volatility, the long-term outlook for commodities is bullish. Planned global economic stimulus spending will fuel demand for commodities. Optimism that the world economy will recover sooner than later will encourage resource companies to increase investments and output to meet future demand. China, Japan, Korea and Russia will be the leading acquirers in the global resource industry to secure supply for domestic consumption and export amid future rising prices, as well as for political considerations. Sovereign wealth funds, in particular those from the Middle East, will also increase their investments to gain attractively priced resource assets beyond their home markets.