Commodities and EM demand could kill recovery

Zealous appetite for commodities and emerging markets could destroy signs of green shoots globally, ...

Zealous appetite for commodities and emerging markets could destroy signs of green shoots globally, according to Axa Investment Managers' head of investment strategy. Sebastian Paris-Horvitz says speculation in the commodities markets and the return of decoupling are fuelling optimism in emerging markets, particularly in China. But heightened interest in the commodities markets, which has led to overpricing in the sector, is creating unwanted inflation and burdening the developed markets. Meanwhile, he says, the decoupling redux pattern put the dollar at risk and threatens to partly i...