Borderless Investor

Nothing makes the arbitrary separation of foreign/domestic or developed/emerging markets look more ridiculous than the mining sector. Amazingly, people still think this way. Bloomberg points out that emerging market mining shares sell for a 23% discount to US-based peers, despite much, much better fundamentals.

Olivier Eugene, a fund manager at AXA sums it up nicely:

“It is totally irrelevant to pick up a commodity producer because of its location,'’ said Eugene, who owns shares of Vale and Russia’s OAO Novolipetsk Steel and doesn’t hold any steelmakers in the U.S. or Japan. “Where the companies are listed and where they are headquartered is irrelevant.'’

Indeed.