Philip Hunter, manager of the Old Mutual Asian Select fund, looks at East versus West and revisits the decoupling question.
One of the attractions of investing in Asia is the opportunity of benefiting from faster GDP growth there than for the global economy overall. This has historically been the case, and consensus forecasts suggest that this is a trend that looks set to continue. An examination of the key growth drivers reveals a number of structural reasons as to why Asia can maintain faster rates of expansion. Much of the region has a young demographic, is in the early stages of industrialisation and is experiencing continuing rural to urban migration: all characteristics that we expect to persist. Mea...
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