Market consensus stipulates its time to unload emerging market assets and move back into developed markets. The reasoning behind the strategy is developed markets are seeing growth while emerging markets are in decline. Analysis cites slower growth and erosion in government fiscal situations in emerging markets that can no longer sustain stimulus offsets to compensate for problems of weaker global demand in developed markets. But developed markets are recovering and according to global interdependence theory that should reflect back into emerging markets. Emerging markets were able to maintain relatively strong growth while developed markets floundered by using government money and organic regional growth with rising prosperity of the middle class. They survived the storm in pretty good shape compared to developed markets and with recovery in developed markets in the forecast emerging markets should see the benefits on top of the still respectable growth for EMs.
Posted on: Thu, 22 Aug 2013 01:21:10 +0000
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