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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Arran Yuan who wrote (59886)	1/12/2010 7:48:51 PM
From: TobagoJack	1 Recommendation Read Replies (2) \| Respond to of 219852

pay 10% fine, exit clean, getgold, stacksilver, pileplatinum ;0)

To: Arran Yuan who wrote (59886)	7/9/2010 4:44:44 PM
From: elmatador	Respond to of 219852

"they are thinking structurally whereas industrial countries are thinking cyclically.” As I keep saying: It is structural. Not cyclical. What I call Great Unwinding, the article calls: "major global and national realignments.” Emerging Market Growth Gap to Widen, El-Erian Says: Tom Keene July 09, 2010, 12:48 PM EDT July 9 (Bloomberg) -- Growth in emerging markets will accelerate faster than in developed nations as economies mature and leaders are quicker to make structural changes, according to Pacific Investment Management Co.’s Mohamed El-Erian. “The structural vision is going on outside of industrialized countries,” El-Erian, Pimco’s chief executive and co-chief investment officer, said in a radio interview today on Bloomberg Surveillance with Tom Keene. “You go to Brazil, you go to Russia, you go to China: they are thinking structurally whereas industrial countries are thinking cyclically.” Global growth will be below average during the next three to five years as developed economies struggle with mounting deficits and increased regulation in the wake of the 2008 collapse of credit markets in what Pimco calls the “new normal,” El-Erian said. The firm is advising investing more in emerging-market nations such as Brazil and China, which should continue to thrive because of stable levels of government debt and expanding middle classes. “The gap between the high growth countries which are in the emerging world and the slower growing countries in the industrial world will get bigger,” said El-Erian, who helps oversee about $1.1 trillion with Pimco founder Bill Gross. “The emerging world is looking to tap the brakes because they are growing too rapidly right now. Compare that debate to the one we are having in the U.S., where we are seeing a slowing of economic growth.” Move to Stocks Pimco, which has been synonymous with bonds for almost four decades, in the past year has created an equity mutual fund and a unit to invest in hedge, real estate and buyout funds. Newport Beach, California-based Pimco has also started 10 exchange- traded funds. The $234 billion Total Return Fund managed by Gross returned 11.97 percent in the past year, beating 61 percent of its peers, according to data compiled by Bloomberg. The one- month return of the world’s biggest mutual fund is 1.61 percent, outpacing 86 percent of competitors. Pimco is a unit of Munich- based insurer Allianz SE. Emerging market maturation “is happening,” said El-Erian, a former deputy director of International Monetary Fund. “It takes time. The important thing to remember is that the market will inevitably be more volatile. They will overshoot on the way up and they will overshoot on the way down. You have to be smart about it.’ Global Realignments El-Erian said he’s concerned that policy makers in industrialized countries are being forced to choose between stimulus and austerity. “We need both,” he said. “Its not just about the lack of global aggregate demand. It’s that the U.S. and other industrial countries have to adjust to some major global and national realignments.” If industrial counties do not adjust they will see “an erosion of human skills, less productivity growth, more pressure on budgets that are already stretched, and more pressure on social safety nets that are already inadequate,” El-Erian said. --With assistance from Ken Prewitt in New York. Editors: Dave Liedtka, Paul Cox To contact the reporters on this story: Cordell Eddings in New York at ceddings@bloomberg.net; Thomas R. Keene in New York at tkeene@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net