Oliver's Insights - Asia and emerging countries vulnerability to a US/European downturn
19 September 2011 - Click here to read the full article.
Key considerations:
- The European debt crisis is still far from resolved and while we see growth in the US avoiding a return to recession, the risk is significant.
- The experience of the global financial crisis warns that the stronger structural fundamentals of Asian and emerging countries won’t necessarily protect them from a downturn in advanced countries.
- However, it also indicates the emerging world can continue to perform better than advanced countries. Over time this likely means a continuation of the favourable trend in Asian and emerging market shares even though traditional global shares remain mired in a secular (or long-term) bear market.
