Wednesday, July 25, 2007

Bull Market in the Emerging Markets II

In response to a comment below about a previous post, the 1-year returns above (click to enlarge) are for emerging stock markets, measured in local currency (from MSCI) instead of USD like the graph below for YTD returns in USD.

While it is true that the appreciation of foreign currencies (depreciation of the USD) has boosted the dollar returns to Americans from investing in emerging markets above the returns above, the 1-year returns in local currency above are still pretty impressive. And it has nothing to do with the falling dollar, and everything to do with a global stock market boom.

As Larry Kudlow said, "Simply put, this is the greatest global stock market boom in history."

The global stock market boom is also part of the largest movement out of poverty in human history. In the last 25 years, hundreds of millions of people--400 million in China alone--have climbed out of the dire poverty of living on less than $1 per day.

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