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

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