February 2012 Market Perspective: Emerging Market Outlook (Part 3)

By Russ Koesterich: << Return to Part 1 The Four Horsemen of EM Strength: Growth, Sentiment, Liquidity and Relative Value

The paragraphs below come courtesy of Mark Mobius, emerging markets guru and executive chairman of Templeton Asset Management.

By The Financial Lexicon:Fellow Seeking Alpha contributor and Global Chief Investment Strategist for BlackRock's iShares ETF business Russ Koesterich recently wrote the article, "As Global Growth Falters, Consider Emerging Markets." In it, he cites the IMF's lowering its global growth forecast and anemic growth across the United States, Europe, and Japan as reasons investors "sh

By Russ Koesterich: This week, I’m updating my views on some of the emerging market countries in Asia. While I’m upgrading Chinese equities from neutral to overweight, I’m downgrading South Korean and Indian stocks from neutral to underweight.

While expectations for global GDP growth are now expected to be +3.3% for 2013 against +3.2% for 2012, the IMF has just slashed the previously rosy 3.6% expectation as the global economy stalls. The US and Europe had significant cuts to their 2013 GDP growth expectations (though of course, this dip recovers hockey-stick-like in 2014). It will perhaps be surprising to learn that Japan had its growth expectation raised the most of all the major advanced and emerging nations.

OTTAWA — The International Monetary Fund is advising Canadian policy-makers against pulling too hard on the reins of austerity, saying in a new forecast that the economy remains weak and vulnerable to shocks. The IMF said Tuesday that Canada’s economy will likely slow to about 1.5% this year from 1.8% last year, before picking up to 2.4% in 2014.

Via Wei Yao of Societe Generale, ...and what it means for the rest of the world