Executive Summary
As a result of economic and demographic changes, we believe that we are in the middle of a major shift in global demand patterns. More of the hours worked, more of the money earned, and therefore more of the money spent will be located in the emerging markets. Inevitably, this will be reflected in the earnings and valuations of companies that serve emerging consumers. The winners will likely be drawn from both the developed and emerging markets, although our view is that over the next several years, locally domiciled companies within emerging markets have an edge due to various home-field advantages. Not all countries and sectors provide the same opportunities. Well-established, high quality companies that have a sustainable edge in fast-growing country/sectors are likely to be the big winners.
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