Bank urges investors to have faith in Brics markets
Growing private consumption in China, Brazil, Russia and South Africa makes Brics an obvious source of ‘significant opportunities’
STOCKHOLM — The Swiss bank that built its fortune tapping new opportunities in the US two centuries ago is telling investors to ditch sclerotic Europe and have greater faith in emerging markets.According to Lombard Odier, Europe is facing at least another decade of ultra-low interest rates, a scenario not unlike what has been playing out in Japan. By contrast, the outlook is much better in Asia, and China in particular.Asia represents "a significant investment opportunity", Theodore Economou, chief investment officer at Lombard’s multi-asset business, said.According to Economou, recent concerns that China might be losing control of its economy are "highly overblown". Instead, more attention should be paid to the country’s ongoing efforts to boost domestic consumption.By contrast, the situation looks dire in Europe, whose struggle to recover from its sovereign debt crisis has Economou drawing comparisons to the Great Depression of the 1930s."We’re now eight years into flooding the wo...
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