Emerging Market Investment Thesis

The purpose of this article is to set out an quot;emerging marketquot; investment thesis that I understand a number of Stockopedia contributors follow, and allow for discussion and investment ideas within that thesis. Here in the UK and, I believe, in many quot;developed economiesquot; (including the US, Eurozone and Japan) we have a pretty poor view of the economic outlook, as reflected in stock markets in those economies. What many fail to realise, however, is that large parts of the rest of the world do not see things that way. I am fortunate to have relatives and investing colleagues that are either based in quot;emerging economiesquot; (EEs) or have recent direct experience of them. The message I am hearing is that whereas we experienced a quot;global financial crisisquot; (GFC) in the developed world, the GFC had relatively little impact on the emerging economies, where it was experienced as little more than a blip on a path of rapid growth which is now continuing.
The IMF’s World Economic Outlook, updated July 2010,  supports this thesis with the following historic amp; forecast chart:

I’ll highlight near term growth forecasts for some selected EE countries:
Country
2010 % GDP Growth
2011 % GDP Growth

China
10.5
9.6
India
9.4
8.4
Brazil
7.1
4.2
S Korea
7.4
8.0
 
Many Stockopedia contributors…