Investment markets in transition as emerging markets boom

Last week I wrote about the way in which shares in emerging markets are outperforming the more mature stock markets in the US and UK.

There is no sign this process is coming to an end. On the contrary, I suspect we may be at a pivotal moment when this phenomenon is going to increasingly dominate investor strategies.

The contrast between many emerging countries’ economies and the UK is even more brutal than the contrast between the fluidity and enterprise of Barcelona and the dour lack of purpose and imagination of last year’s champions, Manchester United, in the Champions’ League final on Wednesday.

Take Britain. Our economy is deep into the worst recession since the 1930s with every prospect that the bad times are going to drag on possibly for years.

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