What We Learned in Asia - Dec 2015

We recently toured Asia on a trip with AIMA (the Alternative Investment Management Association), which served not only to teach us much and open our minds, but validated our points of view on many things.
With respect to commodities and general investment, we have always believed that the time horizon for Asia (particularly China) isn`t the same as the North American investment timeframe of 3, 5 or 7 years. It is more like 33, 35 or 37 years, and this is exactly what we saw and heard from people on the ground throughout Asia including officials from the Hong Kong Exchange.  This sentiment was summed up brilliantly some time ago by the CEO of CPP, one of the largest and most respected investors in the region, who said: 'we don`t think in terms of quarters, but quarter centuries'.  
In response to their own significant investment in the region, one senior official highlighted they 'like to focus on the demand side of the equation long term'. We agree. The current state of commodities is oversupply, which is more favourable than a lack of demand because supply can adapt more quickly to falling price - and it has.
Based on our time in Asia, noting there are 300 to 500 million middle-class investors, we believe that the question is not whether demand is there or not, it is what impact this demand will have on the price of commodities and general investment in future. Keep your mind open.