Arnott: Emerging Markets Still Look Good
Emerging markets, for the most part, don’t have large deficits; for the most part don’t have large debt burdens. Not because they wouldn’t be willing to have large debts, but because the markets won't let them. The debt burden of the emerging economies is 10 percent of the world total. For the G5, it’s 70 percent. Both represent 40 percent of world GDP. So one has seven times the debt coverage ratio of the other. Which would you rather own?