Brookes: Buy Commodities and Emerging Markets Now

With inflation on the rise investors should be dumping long-term bonds and buying up commodities, gold and emerging market equities says Schroder's Marcus Brookes

Emma Wall 13 December, 2016 | 1:26PM
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This article is part of Morningstar's Guide to Alternative Investing; providing everything you need to know about property, commodities, infrastructure and other diversifying assets. 

Inflation has hit a two-year high, up to 1.2% in November from 0.9% the previous month. The rise was in line with expectations, as the UK begins to feel the force of falling sterling and rising commodity prices.

Although the figure is still some way off the Government’s 2% target, it is expected that inflation will rise throughout 2017, as the cost of imports and oil pushes up the cost of living. The price of oil fell to $26 a barrel in February, and if it follows historic trends, the price should double of the proceeding 400 days.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Artemis Global Emerging Mkts I Acc EUR1.16 EUR-0.23
Glencore PLC369.90 GBP0.00Rating
Ninety One UK Special Situations A Acc1,387.78 GBP0.98Rating
Schroder MM Diversity A Acc1.22 GBP0.00Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar