World Perspectives

Length of Commodities Boom

There are an increasing number of reports citing the potential for the recent jump in commodities prices to be more than just a short-term dynamic. Masayuki Noumi of Mizuho Bank is quoted saying, "Prices will get stuck at high levels as the balance of supply and demand is tightening." However, most such comments are focused on a few industrial commodities like copper and petroleum. The price of copper is up 70 percent from a year ago and the value of petroleum and corn have doubled. However, producing metals and oil require long-term investments that have declined whereas a surplus of corn can be just one crop away.  Indices such as the Bloomberg Commodity Index are adjusted annually to better reflect underlying changes. Bloomberg cla...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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