Did anyone else notice that the Federal Reserve rate hikes failed to lower long term interest rates. The phenomena had many people puzzled. The reason for the change is that our interest rates are no longer determined by the Federal Reserves ... but by China.
The Emerging Markets is a new must read by Antoine van Agtmael that explores the fundamental economic shifts occurring as the emerging markets (once called the third world) rapidly eclipse the first world. Funds investing in the emerging markets have been realizing an astounding 37% growth per year. The emerging market is no longer simply using cheap labor to replicate inventions from the first world. The third world has become the primary stage for research and development. For that matter, most of the real cutting edge technology showing up on shelves these days (such as the plasma TVs, iPhones, etc.) are coming from the emerging markets.
The United States is even likely to lose its edge in education as emerging markets build universities that rival those of the first world.
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