Near record prices bolster Canadian, Latin American companies' profit outlooks NEW YORK, Feb. 28 /PRNewswire/ -- While the uncertainty in the global markets continues, Standard & Poor's Equity Research Services asserts investors can leverage strong commodity pricing to cushion their equity portfolios. Further detail can be found in the report titled International Investment Outlooks: Commodity Cushion, published by Standard & Poor's, a leading provider of financial market intelligence. "We believe commodity prices are benefiting from investors' increasing worries that inflation, which has begun to inch up globally, will continue to rise," says Alec Young, International Equity Strategist for Standard & Poor's Equity Research. "In addition, with most commodities denominated in greenbacks, the U.S. dollar's long-term downtrend continues to support raw material prices." While global capital markets have already priced in a mild U.S. recession, by our analysis, raw material prices continue to reach new highs. Tighter global capacity along with strong demand from emerging markets has counter-balanced demand weakness in developed countries. From an equity investment perspective, S&P Equity Research believes commodity-driven EPS momentum will continue to positively differentiate the Latin American and Canadian markets. "Canada and Latin America's 35.8% and 46.5% respective exposures to the Materials and Energy sectors have led to positive index level consensus 2008 EPS revisions in these regions at a time when the U.S., Europe and Asia all have very limited EPS visibility," adds Young. "It's important to note that commodities, particularly precious metals, benefit from increasing geopolitical tensions. Since it's impossible to predict these unfortunate events, we believe it behooves investors to build this 'portfolio insurance' into their asset allocations." Standard & Poor's Equity Research believes the current commodity bull market presents opportunities for equities in the Materials sector. "Companies in the metals sub-industry of the commodities market have been delivering solid earnings for a sustained period," says Leo Larkin, Diversified Metals & Mining Analyst for Standard & Poor's Equity Research. "Gold has been particularly rewarding, as it has enjoyed a seven-year bull run, and we recommend the purchase of Barrick Gold (ABX: Buy; $51). In our view, copper also has been a nice surprise that has rewarded investors with strong returns. We have a favorable view of Teck Cominco (TCK: Buy; $40), partly based on higher copper prices." Standard & Poor's Equity Research delivers insights into stocks and markets, along with new investment ideas everyday through products, such as The Outlook and MarketScope Advisor. These offerings draw from data, knowledge and research, including Standard & Poor's Equity Research's award- winning STARS coverage and Stock Reports. Detailed financial information, such as valuation models, and proprietary Standard & Poor's metrics like Fair Value and Quality Rankings, can be found in Stock Reports on nearly 1,600 U.S.-listed equities. The statements above are from Standard & Poor's equity analysts and strategists, who have no affiliation with any company they cover, nor any ownership interest in any companies they cover. About Standard & Poor's Equity Research Services As the world's largest producer of independent equity research, Standard & Poor's licenses its research to over 1,000 institutions for their investors and advisors, including 19 of the top 20 securities firms, 13 of the top 20 banks, and 11 of the top 20 life insurance companies. Standard & Poor's team of 120 experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of approximately 2,000 equities across more than 120 industries worldwide. Follow Standard & Poor's equity analysts' U.S. market commentary each day at http://www.equityresearch.standardandpoors.com/. The equity research reports and recommendations provided by Standard & Poor's Equity Research Services are performed separately from any other analytic activity of Standard & Poor's. Standard & Poor's Equity Research Services has no access to non-public information received by other units of Standard & Poor's. Standard & Poor's does not trade for its own account. The analytical and ethical conduct of Standard & Poor's equity analysts is governed by the firm's Research Objectivity Policy, a copy of which may also be found at http://www.standardandpoors.com/ or by going to http://www2.standardandpoors.com/spf/pdf/equity/ResearchObjectivityPolicy2005. pdf. (due to the length of url please copy and paste into web browser.) About Standard & Poor's Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 23 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com/. DATASOURCE: Standard & Poor's Equity Research CONTACT: Jeff Sexton, Communications, 212-438-3448 Web site: http://www.standardandpoors.com/ http://www.equityresearch.standardandpoors.com/

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