Across the board, commodity prices are soaring. Part of the recent run-up is event-driven: Political upheaval in Libya has sent oil prices skyrocketing, while violence in the Ivory Coast recently tightened the world's supply of coffee and cocoa. Flooding and drought around the world last year caused major crop failures and shortages. But for much of the past year, we've seen extraordinary price hikes in gold, copper, minerals, wheat, corn, cotton and more. How much of this trend is a temporary spike, and how much is caused by fundamental demand growth in emerging markets like China and India? Is the world now in a permanent race to grab precious commodities? How should investors approach this sector? And how will today's commodity shocks affect a fragile recovery?
Senior Managing Director, Apollo Global Management LLC; Managing Partner and Co-Founder, Apollo Management LP
Chairman and CEO, Environmental Financial Products; Senior Fellow, Milken Institute