Ray Dalio’s Bridgewater Associates is a prominent hedge fund management firm. Previously, the firm held an optimistic view about emerging markets (EDC) (IEMG).
The corporate debt level of most nonfinancial companies in emerging economies rose from $4.0 trillion in 2004 to $18.0 trillion in 2014, according to the IMF Global Financial Stability report.
Emerging markets (VWO) have been on a tear this year! The past few years saw the asset class languish under fears of an economic downturn in China (YINN)(FXI), a US rate hike by the Federal Reserve, current account deficits, and currency volatility.
The price of copper has increased from around $4,470 per metric ton in January 2016 to more than $4,800 per metric ton in July 2016. That’s a rise of 7.4%.
China is the world’s second-largest economy. The transformation in the economy, from a manufacturing hub to a consumption-based economy, will drive growth.
In the current situation, when the question arises about investment in emerging markets (EEM) (EDC), investors tend to think about the Chinese economy.
With its large amount of copper resources, Chile accounts for over a third of global copper output. Copper accounts for about 55% of all Chilean exports.
