Strength In Emerging Markets

In a main-stream adoption of Peter Schiff’s assessment of the strength of emerging markets, this article points out a growing belief that emerging markets will outperform developed ones as we move through the recession.

Despite, and without, the macro-economic analysis, it is logically not that hard to figure out why this is so. Emerging markets generally have large natural resource reserves, translating to potential true wealth, while developed economies are stricken with debt and enlarged service and financial industries that produce little. That, in combination with generally lower wages, will attract what intact investment money survives from the developed economies of the world, furthering the gap between the two classes of economies.