Dear Reader
Every now and then we need some good news. So in these remaining days of 2013, I’d like to share our newest insights.
The recovery of the world economy is expected to strengthen in 2014-2015. But this recovery would be a very slow one, as the global environment is still dominated by major problems that need to be overcome. On one hand, the long period of public and private deleveraging in developed countries is still far from over. On the other hand, emerging market economies are beginning a new step in their development process marked by structural challenges.
Scandinavia and Finland will keep focussing on extractive industries. Norwegian Sea may hold vast mineral and metal deposits. New research suggests that the seafloor between Jan Mayen and Svallbard likely holds great quantities of mineral and metallic resources like gold, silver and copper.
Commodities’ Market shapes new challenges for investors. Some of the economic conditions that prompted investors to buy mining shares over the past few years no longer exist. Many investors losing faith in gold as a preserver of wealth after inflation failed to accelerate and the Federal Reserve definitively signalled it will curb stimulus. Mine output may also drop. On the other riverside, investments in agricultural resources find new fields in Eastern Europe and Africa. Agriculture could be a catalyst for economic growth in Africa, but lack of funding for strategic investments risks is undermining progress. Emerging Market economies had proved resilient players in the global economy since 2008. But the situation has been recently disrupted by financial turbulence; not yet strong signals from developed economies while their levels of activity remains low. The global growth presents much more uncertainties than spots of confidence with slightly growing in 2014. The consequences of the exit from unconventional monetary policies will continue to be among the main sources of uncertainty. “Innovations for sustainability” is a real guideline for many companies we focus on.
I thank you for all of your support and excellent relationship during 2013, and I look forward to an even bigger 2014.
Best Season’s greetings,
Eleni Regli