Emerging Market Growth Beats US
Around 70% of world growth over the next few years will come from emerging markets, with China and India accounting for 40% of that growth. Adjusted for variations in purchasing power parity, the ascent of emerging markets is even more impressive: the International Monetary Fund forecasts that the total GDP of emerging markets could overtake that of the developed economies in 2014. China's purchasing power is expected to surpass that of the US by 2016. With GDP growth generally a lagging indicator, it is often more rewarding to pay attention to policies that encourage economic growth when trying to predict outperforming global markets, says Vlad Signorelli, Global Research Director at Brettonwoods Research LLC. "Look for countries that are maintaining lower rates of taxation on capital alongside a policy of gradual currency appreciation. Predictability on tax rates is generally positive and currency