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Loughton_Monkey

lvader wrote: »

I quite like the current make up of the FTSE, a lot of the companies are well positioned to make the most from emerging markets. Regardless of how the UK economy performs that FTSE is well positioned to do as well as any of the major indicies.

I don't necessarily disagree with this, but just because there is 'some' exposure to emerging markets, does not make British Companies a particularly good bet.

Certainly, the FTSE100 these days is well spread - predominantly in Europe/USA - and a bit in emerging markets. It therefore also has currency spread. But even today, many 'emerging markets' make it extremely difficult for foreign companies to trade on a 'level playing field'.

China and Korea are extremely good examples of very healthy emerging markets in which foreign companies have a huge problem to operate there. In China, totally different legislation applies to foreign companies than applies to 'equivalent' indigenous companies.

I certainly have 'a bit' in UK equities. Nothing wrong with that. But I like to put a significant proportion directly into other markets where I think the 'growth' is. And in my view that is certainly not UK, Europe, or USA. Not only do I see long term growth being lower here, I predict volatility will get bigger, while the growing markets will eventually become less volatile. [Only anecdotal, but I tend to see that already. Look at what stories like Ireland do to FTSE - despite the problem already fully known. You tend not to see this as much in emerging markets. Unlike us, they just tend to concentrate on growing the production of their countries at our expense!]

Opinions, opinions, opinions.....