This Chart Should Influence Your Future Asset Allocation

Includes: ADRE, DEM, EDZ
by: Lawrence Weinman

From the FT (above)

Developed vs Developing Country Economies as % Of World GDP

Since 1999, emerging and developing countries = 36% of world GDP. In 2009 that figure rose to 48%.

Advanced economies on the other hand, went from 64% to 52%.
Is there any possible reason to think that this trend will reverse itself ?

  • MSCI World Index of Developed Markets in dollar terms over the period -19.5$
  • MSCI Emerging Market Index +94%
  • BRIC Markets (Brazil, Russia, India, China) +173.5%