AndrewBaker

Emerging Markets: The Return of Decoupling?

Decoupling will happen in time ... but not so much just yet. The emerging markets still need to export to us and the west to get the growth they want and need. As they improve internally, then their own populations will want nicer and better things, and that will cause the decoupling effect to happen and show due to their own thriving internal economies. It will come, but I'd wait for our recovery to show first, then back the emerging economies to shoot ahead.

Are Emerging Markets a Safe Haven?

One emerging market play that I believe will be profitable is that of sovereign debt: very few governments renage on their debt issuance, yet at this time emerging market sovereign debt can be bought cheaply with high yields, so you get the benefit of both income now and capital gain later, plus the leverage bonus if the dollar falls going forward, which I believe it must do.