While reading Howard Gold’s article (linked below), I kept thinking in my mind about opportunities. If Gold’s assumption about inflation having a significant impact on emerging markets is correct, you still will be able to benefit from these markets as an investor.
Inflation via commodity price swings is something that some companies will benefit from. Knowing which companies are positioned well to benefit and which countries they operate in can help lead you to being in the right investments when inflation starts heating up.
I’ve mentioned ag companies like Bunge (BG) before. Energy producing companies and the companies that produce the equipment necessary to extract such resources will benefit. These are two of the most obvious examples I can think of. It’s only a start.
The main point to understand is that where people foresee shifts in the economic landscape there will be opportunities for investors. Some investors will lose, but an opportunity to win is always present. It may mean you will have to have a little more knowledge or an edge somewhere, but opportunities still exist.
I encourage you to read Howard Gold’s article on emerging markets below and to continue to think about the unspoken potential opportunities you can identify when reading similar articles.