The Rising Influence of Rising Affluence

[DewDiligence]

No doubt about it—the question is how bad this trend will become for shareholders of natural resources companies. Investors need to assess the degree of these interventions on a case-by-case basis. For instance, I think VALE has a sufficiently bright future to outweigh the downside of government meddling and resource nationalism, but I reached the opposite opinion about Petrobras. I’ve chosen not to invest in any Russian or Chinese companies, regardless of the circumstances.