It’s Off to the Races With Emerging Markets

November 5th, 2010
| More
Contributed by: The Mad Hedge Fund Trader
Ben Bernanke’s unprecedented announcement that he is buying $600 billion in medium dated Treasury securities is tantamount to the government ordering you to pour all of your money into emerging markets. The “RISK ON” switch has been flipped, and the Feds have poured super glue into the mechanism. We could have a moon shot up until the end of the year from here. The only price to pay is rising risk levels.

Jim O’Neil is the fabled analyst who invented the “BRIC” term a decade ago, and has since been kicked upstairs to the chairman’s seat at Goldman Sachs International (GS) in London. Jim thinks that it is still the early days for the space, and that these countries have another ten years of high growth ahead of them.

As I have been pushing emerging markets since the inception of this letter, this is music to my ears. By 2018 the combined GDP of the BRIC’s, Brazil (EWZ), Russia (RSX), India (PIN), and China (FXI), will match that of the US. China alone will reach two thirds of the American figure for gross domestic product. All that requires is for China to maintain a virile 8% annual growth rate for eight more years, while the US plods along at an arthritic 2% rate.

Page 1 of 2 Next >>
For Detailed Investor Profiles on these Investors, click below:
Kynikos Associates
Related People: James Chanos
Related Entities: Kynikos Alpha Tactical Fund; Kynikos Opportunities; Ursus International; Ursus Partners LP
Related Article Tags: Investment Management, Fund Manager and General Financial News; Hedge Fund Resources and Featured Partner News


More Recent Headlines

QE2 or the Titanic? The Fed's $600 billion injection

Tiger Management’s Julian Robertson loves Apple

AIFAM Inc launches long/short equity focused fund of hedge funds

Jack Meyer’s Convexity Capital Management continues to outperform market indices

Highbridge Capital Management buys majority stake in Brazilian manager Gávea Investimentos

Henry Swieca’s Talpion LLC hires JL Advisors veteran

SFCS Capital's September Market Review

Goldman veteran Pierre-Henri Flamand to launch Edoma Capital with $1 billion

BlueCrest Capital will liquidate BlueTrend UCITS Fund

Boston Trading and Research’s Akyil and Karlis charged with $40 million fraud scheme