If you can buy anything anywhere why not to buy the best?
2013 was a risk on year. But not all went up big. The best equity
markets were Japan up 56,72% for the year, USA up 29,60% and Germany up 25,48%.
Some of the worst equity markets were the BRIC's with Brazil -15,50%, China
-6,75%, Russia -5,55% and India 8,98%.
What can we take from this?
My explanation why Developed markets are doing better than Emerging
markets it's because many Chinese & Indian kids buy music of Adele, Taylor
Swift or One Direction and not many German or American kids buy Indian music.
That is simple as that. As the Emerging market's start to emerge and people get
to have some money they want to buy the best in the world. They want an i-Phone,
a BMW or a Rolex , etc....
You can look at the Global 50 Albums of 2012 and we can't find many
Emerging market names!
With Globalization & Internet people know what is the best (What
is perceived to be the best) and they want the best. The best in each industry
& the best in each category usually are located in US, Germany and other
developed markets.
I think that is what we are witnessing presently. Big Get Bigger is
a big trend. The companies that are multinationals with big R&D budgets and
huge marketing power are growing much bigger that the local player. Small & Local is
not so beautiful.
If you can buy anything anywhere why not to buy the best?
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27. …and the share of income going to workers is declining.
ReplyDeletehttp://www.washingtonpost.com/blogs/wonkblog/files/2013/08/labor_share_of_income.png
Source: Cleveland Fed.
For decades, it was commonly thought that labor and capital's relative shares of GDP stayed constant over time. No longer: The labor share has been steadily declining of late, and no one really knows why.