Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

The power of the emerging market consumer

When it comes to investing in the emerging markets, look to the consumer rather than the exports.

That’s the view of Didier Saint-Georges, a member of the investment committee at Carmignac Gestion. He believes that emerging market consumers are a rapidly growing source of demand; as their incomes grow, so their consumption patterns change with more emphasis on discretionary and luxury goods, telecoms and financial services.

Saint-Georges also believes other factors are favourable for investors looking at the emerging markets.

The US economy recovery is stimulating  exports from these economies while inflation is not a great threat. In China, the biggest emerging market of all, growth is solid (even if a bit slower than it was) while the new political elite is making good progress to create a more stable financial system

Finally, while many investors believe emerging market debt is overpriced, Saint-Georges sees selective opportunities in countries such as Poland, Mexico and Turkey where prices may benefit from falling interest rates.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter