Commodities markets should continue to offer good long-term investments, according to one expert.
Ian Henderson, portfolio manager of the JP Morgan Natural Resources Fund, explained that as demand is being driven by the growth of cities in emerging markets, the values of investments relating to the sector should offer consistent growth.
He said: "Commodity markets have and probably always will be volatile over the short term but I can see no reason why growth over the next ten years or more should not mirror that of the previous ten years."
To dismiss the current rate of growth in commodities investments as unsustainable "seems almost foolhardy", he added.
Yesterday, Chris Palmer, head of global emerging markets at Gartmore, warned that inflation could prove to be a threat to investments in emerging markets.
He advised people to identify the companies which are best placed to manage price pressures and invest in these.




