Portway Capital - Emerging Economies Topping The Risk-Return Curve
Released on: August 12, 2008, 3:12 pm
Press Release Author: Michael Brown
Industry: Financial
Press Release Summary: Recent comments from within Portway Capital indicate that a carefully selected team of analysts have been tasked with reporting on the outlook for emerging economies amidst well-founded fears of a looming, global inflation crisis, with a view to identifying specific areas of risk and ultimately those market sectors which stand to benefit from spiraling prices, or even the prospect thereof.
Press Release Body: The comments came from an undisclosed source within France-based Portway Capital, following a recent warning from Central bankers against the dangers of surging inflation, saying rising energy costs risk damaging growth in rich and poor countries alike. The comments from within Portway Capital, came after officials from more than 100 central banks recently exchanged views on the global economic outlook and agreed oil prices -- which surged past $142 a barrel for the first time last week -- were a major concern. Furthermore, The World Bank recently warned that 33 countries from Mexico to Yemen faced social unrest because of higher commodity costs The source, who requested to remain anonymous, said that Portway Capital were particularly keen on the impact of spiraling inflation on emerging economies, where consumers require a greater percentage of their income for food than in industrialized nations. Citing the recent riots in Guinea - which were a result of police officers discontent at unpaid salary arrears, and the well documented disturbances in Egypt, the source continued " Portway Capital are interested primarily in the repercussions of social , rather than economic fallout as a result of hyperinflation." Besides the obvious assessment of risk (any assets held in a country experiencing civil uprisings would be highly volatile), the source hinted that Portway Capital were looking at specific short-medium term investment targets, most likely commodities, which could experience a spike as a result of short-term chaos. Referring specifically to the last years rise in platinum prices worldwide following the threat of Labor Strikes at South Africa's largest Platinum Mine, the source suggested that identifying undervalued investments in commodities- and energy-related sectors as a result of local instabilities was, in fact, the primary focus of the Portway Capital report.
Web Site: http://www.portwaycapital.com
Contact Details: Michael Brown Pr Newsnow 1200 Westway Santa Clara CA 95010