Sunday, June 5, 2011

Economic decoupling - with this time be different?

Prior to the financial crisis, it was widely believed that economic decoupling would take place between the developing and developed economic regions as dependence on economies such as the U.S declined. However, during the collapse, all economic regions were negatively impacted.

MY TAKE: There are many factors that drive positive and negative market performance – at the top of the list are economic growth and inflation trends. As the level of uncertainty increases in several major markets, global investors will continue to seek higher yield. Short term performance in developing equity markets such as Chile, Colombia, Egypt, Indonesia, Malaysia, New Zealand, Philippines, South Africa, Singapore, and Taiwan have been better than most. I will explore this topic in more detail in the future.

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