To: robert b furman who wrote (31299 ) 4/25/2012 6:05:54 PM From: architect* Read Replies (2) | Respond to Emerging markets have something we do not. The USA has something the emerging market do not - consumers. Ben's estimates of forward USA GDP growth of +3% thru 2014, indicate that the USA will be consuming the stuff the emerging markets are producing, for the next three years. They are working hard making cheap products for us at declining profit margins. I'm investing in the countries and companies that are producers of hard assets, but the market is currently rewarding the Apple's and Exxon's that are benefiting from consumer spending. China needs to boost chinese consumption, to become the dog, instead of the tail. Every chinese modern probably craves an I-phone. The world meanwhile continues to build excess capacity. That explains why the market valuations are historically low for the producers, at least for the oil and gold producers that I follow. Oil and Gold producer valuations are historically low relative to gold and oil prices. safehaven.com [/url]
