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ECHO FROM THE ALPS: The Sun is rising in the East....indeed..

 

In our March 2009 update “The sun is rising in the east”, we projected that Asia would be the first region to experience a significant increase in economic activity and that the recovery of the global economy would thus start in Asia. I think there is now increasing evidence of this and the latest economic data confirms this view. Not only are real estate prices starting to recover, but also sales of cars and freight rates are trending upwards. This is starting to have a positive effect on companies in the west already. For example, Swiss watch makers are starting to see a gradual improvement of business conditions in Asia and commodity producers are also experiencing stronger demand from Asia and other emergingmarkets. We think that the recent outperformance of emerging markets is more than just a temporary development. The trend will likely be fueled further as  an increasing amount of global capital is seeking real economic growth opportunities, will flow into these markets. However, we propose not to "index" the market, but to carefully select individual investments. We like the sectors energy, real estate, green technologies and premium healthcare.