Redwood: Have emerging markets outgrown their strength?

It has been fashionable for many months to claim China and the emerging market countries have outgrown their strength.

Some forecast a bursting of what they claim is a property and banking bubble in China. Some just think China will overdo applying the monetary brakes. Some think China is inflating too quickly, allowing others to become more competitive. There is always the danger China will overdo the monetary tightening. There remain political and banking risks in China, as elsewhere. If the gloom mongers are right it will not make Western equity markets particularly comfortable places to be either. Globalisation has made more Western companies dependent on Chinese demand and trade, and many multinatio...