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in 2008: Taming Inflationary Pressures - MEDIA CONFERENCE CALL TUESDAY, DECEMBER 11, 2007 - WHAT: According to GGOF, the bulk of inflationary pressure is emanating from Asia, where the shift of more than 300 million people into the middle class has been creating a domino effect of unprecedented demand for raw materials and commodities. Resources, such as oil, gas and base metals are not only needed to satisfy consumer appetites for TVs, cell phones and cars, but to build the infrastructure of an increasingly consumer-driven society. As global demand for goods and services rises, so too does inflation. The numbers speak for themselves:
The staggering increase in consumer demand for products and domestic consumption requires a parallel increase in raw materials. All of this is driving inflation and investments must keep pace. In Canada, $1,000 in 1980 would be worth only $380 in 2006. A much overlooked, but historical hedge against rising inflation is real estate. Typically considered a ‘local’ or ‘residential’ investment, there are many opportunities for investors to participate in the global real estate market. For example, over the last 20 years, REIT share prices have more than kept pace with the Consumer Price Index (CPI), a traditional measure of inflation, thus protecting an investor’s capital from the rising cost of living. Nevertheless, with the demand from Asia for raw materials, gas and base metals to remain at record highs, investors would be wise to keep a hand in real estate and resources in 2008. WHO: Gavin Graham, Chief Investment Officer, GGOF David Harding, Managing Director, Matthews Wally Kusters, Managing Director, Barrantagh Investment Management WHEN: A print transcript of the conference call will be available upon request. - 30 - Media Contacts: JoAnne Hayes, Toronto, joanne.hayes@bmo.com,
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