“You will lose more in purchasing power (as central bank monetary inflation destroys the currency by printing enough to finance the higher stock prices) than you will ever net in gains…”
Gulf States are raining money. With oil hitting $127 a barrel, the world population soaring and demand for scarce commodities at an all time high… these resource-rich emerging markets are being flooded with investment.
We’ve been hearing it for years: “You’ve got to be in emerging markets.”
What happened to Asian decoupling? Wasn’t Asia – thanks largely to fast-growing heavyweights China and India – supposed to shrug off the financial crisis and economic slowdown in the US?