Commodities Will Outperform Equities for 10 Years, Galtere Says
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Commodities will outperform companies that buy raw materials as demand for food and clothing climbs in developing nations over the next decade, according to Galtere Ltd., an investment company with $1.1 billion.
Shares of companies that use raw materials will lag gains in the commodities because manufacturers and retailers won’t be able to fully pass on higher costs to customers, Lauren Polen, an analyst at New York-based Galtere, said in an interview in London on Nov. 10. Corn has jumped 36 percent this year, cotton is up 81 percent and soybeans climbed 21 percent.