Emerging market sparkle begins to fade - FT.com

Emerging market sparkle begins to fade - FT.com:

"An uncomfortable truth is making itself felt around the world of emerging market investors: the emerging market growth story is dead.
This is not to say that emerging economies will no longer grow. Nor even that emerging market assets will no longer deliver attractive returns. But the days are long gone when “emerging markets” could be seen as a single asset class. More than that: as David Lubin, head of emerging market economics at Citigroup puts it, the very “foundation myth” of the emerging markets no longer holds true.
“The EM story is based on rapid growth, led by exports, which delivers large current account surpluses, which leads to the accumulation of foreign exchange reserves and the expansion of domestic credit,” he says. “Every single element of that story is no longer true.”"

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