Emerging Markets Propel Global Rebound
A research report from Citigroup Inc. during the quarter forecasted economic growth, not adjusted for inflation, of 5.8% in 2009 in emerging markets, compared with a decline of 4.7% in developed markets.
“There may be values in developed markets, but they look less attractive, because the growth profile of many emerging-market countries is higher and valuations are similar or cheaper,” said Rob Lutts, chief investment officer at Cabot Money Management in Salem, Mass.
Microfinance investments are at the forefront of these trends, with low entry valuations, high growth and strong cash flow. An excellent allocation for those looking for emerging market exposure.