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Why Emerging Markets?
We believe “our chosen“ Emerging Markets will substantially outperform the stock markets in Europe and USA over the next decade as:
Their growth rates will be at least twice as large as the Industrial Worlds.
Their valuations are more attractive.
Their corporate balance sheets are stronger i.e. less debt.
Their government finances are substantially stronger – The World’s FX reserves are primarily held by China, Russia and GCC.
Their currencies are most likely over time to appreciate versus the Euro, US dollar and Yen.
How much of ones assets should be invested in Emerging Markets?!? … We think the question should rather be how much of ones assets should not be invested in Emerging Markets?
In the past retail investors would invest some 5% into Emerging Markets, today this percentage has increased considerably and will continue to do so.
We believe our "chosen" Emerging Markets will substantially outperform the stock markets in Europe and USA over the next decade as:
- Their growth rates will be at least twice as large as the industrial worlds.
- Their valuations are more attractive.
- Their corporate balance sheets are stronger i.e. less debt.
- Their government finances are substantially stronger – The world’s FX reserves are primarily held by China, Russia and GCC.
- Their currencies are most likely to appreciate over time versus the Euro, US dollar and Yen.
How much of one's assets should be invested in Emerging Markets?
We think the question should rather be how much of one's assets should not be invested in Emerging Markets?!?!
In the past retail investors would invest some 5% into Emerging Markets, today this percentage has increased considerably and will continue to do so.
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