Holmes said that despite the dizzying rises in commodities over recent years, there is no bubble-burst ahead. He describes the basic-materials market as “in the throes of a soft landing.” And he offers a safety net, as everywhere in the world, “people need to eat and build.”
The CEO/CIO described other commodity “demand-drivers” in the form of government policies and “the ‘Chindias’ [i.e., China and India] of the world.” Discussing the two giant nations’ voracious appetites for resources, he quotes Newt Gingrich as jesting that, “In New York City, it takes 22 years to build an airport extension; in China, 22 months.”
Surprisingly, Holmes says one of the most misunderstood nations is Colombia, which he lauds as “a fantastic country.” Maintaining that there are “more kidnappings in Mexico City than [Colombian capital] Bogota,“ he declares that “we’ve made a lot of money in oil and gas there.”