Emerging Markets Archive
Emerging markets represent the biggest growth opportunity of our lifetime. Brazil, Russia, India and China (the BRICs) will account for 25% of global GDP in 2011, up from 11% in 1990. And by 2050, that figure will rise to 40%, according to Goldman Sachs (NYSE: GS). Also, consider that public debt in industrialized countries is over 90% of GDP – and is projected to increase dramatically to almost 110% of GDP in the next five years, according to the IMF. By contrast, in emerging markets, public debt is equal to just 38% of GDP and projected to decrease to 34% over the same period of time. You simply can’t pass on this historic profit opportunity.
The ever-trusting bull investors have replaced Aladdin’s genie with China’s regulators. But frankly, they don’t have the magic to avert every crisis in this emerging market. Reuters‘ Jon Gordon gets the skinny from Breakingviews‘ Peter Thal Larsen on what investors should beware of……
Watch the Video