It was not long ago
that emerging markets were considered to be the growth engines of the global
economy.
The huge promise that
investors saw in these economies was embodied by the popularity of the term
BRICS. When most of the developed economies fell such as a pack of cards in the
crisis of 2008, the BRIC club showed amazing resilience. No wonder, these economies
became hotbeds for investors.
However, if the year
2013 is anything to go by, all that glory seems to be a thing of the past.
The year 2013 saw
developed share markets surpassing emerging ones. While the stimulus gave a
boost to developed markets, emerging economies seemed to be losing their sheen
and appeal due to the fear of US tapering.
The positive growth
surprise in the developed economies was in stark contrast to the poor growth
for emerging markets including India.
The chart here shows
that share markets of developed countries outperformed stock markets of
emerging countries.
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