Recently, the G-20 meeting took place in Seoul, South Korea. The participants stated goals prior to the event were to “ensure global economic recovery and strengthening the global financial system”. I am offering no commentary here, as to the outcome.
The main economic council for ‘wealthy’ nations was expanded from the G-8 to the G-20in September 2009. This major shift in G’s is significant and confirms that emerging markets can no longer be ignored, as the current composition of the G’s serves as an accurate ‘mirror’ of where economic power currently resides.
Importantly: economic power is no longer measured in terms of output– consumption is equally valued.
When I ran a relative strength analysis of the G-20 participants emerging market members sat atop the grid as follows: Turkey, Indonesia, Mexico, and India, while the lower ranked participants come from developed markets - Germany, Italy, France, and the European Monetary Union (the EU is a member organization).
As the G-8 has evolved into the G-20 we too must evolve our portfolios to mirror this shift in economic power.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment