It doesn’t take a rocket scientist to figure out that the west is losing out to Asia and Latin American countries when it comes to development and economic growth. The west has long since developed and has now hit a plateau while the developing world and emerging markets are powering the growth of the world. Emerging markets ETF that focus on BRIC nations, Latin America and Asia have continued to grow steadily over the last few months and the portents for continued growth are good, even excellent.
Brazil, China and India are all posting growth rates of close to double digits and markets in Colombia, Chile and Thailand have hit record highs in recent time. Funds that have focused specifically on India, Singapore and Malaysia have fared even better. In stark contrast, equity growth in the US and in Europe has been flattering to deceive, leading to many putting their money where the smart option is, on emerging markets ETF. The world’s economic leadership is flowing from these nations and this is not just “keep up with the pack” leadership; it’s absolute leadership at its finest. You will hard press to find growth as much as you will find it in these emerging markets.
Globally, we are still recovering from the after-effects of what is largely American corporate greed, but it is critical that each economy viewed in isolation since they are not all at the same stage of evolution. Some developed markets are somewhat sluggish in comparison while many in the emerging world have already shaken off the slump and are galloping on. Take a look at Brazil; their economic growth has not impeded in the slightest and if anything, their standard of living is improving all the time. The same is true of China and India.
The Federal Reserve might have sanctioned a fresh round of quantitative easing in November, but there are no monetary or economic worries to have from these emerging markets. A lot will depend on governments around the world to behave expeditiously if things go wrong and that might be asking of too much given how slowly governments tend to react. But all said and done, emerging markets ETF are the way to go with investing right now.