| Since commodities are priced in U.S. dollars and a stronger greenback equates to a loss of purchasing power by commodity buyers, investors have been wise to avoid commodity cyclicals when the U.S. dollar is rising. But Canaccord Genuity portfolio strategist Martin Roberge points out that this approach fails to recognize that emerging markets have become the dominant buyers of commodities in recent years, as opposed to developed markets in the past.
For example, trade balance data show that EMs have become net commodity importers of industrial commodities such as base metals, fertilizers and forest products since 2008 and developed markets are now net exporters...............................................Full Article: Source
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