As I've been saying the last few months, the inflation scare was a tad overdone. A good part of the emerging market inflation had to do with plummeting of prices in 2009 followed by the sharp rise in 2010. This lead to the misleading year over year increases instead of looking at a smoother change over the last 3-5 years.
Last night, India reported food inflation had dropped to 4.35% for the week ending December 3rd. This was the lowest reading since February 2008. Amazing that India didn't report any numbers below that for the rest of the crisis especially in late 2008 or early 2009.
On top of this,, the economic advisor listed in the Reuters report expects a drop to 3% within a month.
We're working on a series of reports focusing on the emerging market opportunities especially now as inflation fears come under control and central banks have begun loosening monetary policies.
Not many better investments exist than buying high growth stocks at 1, 2, or 3 year lows right into the start of an expansion cycle.
Links to first two reports below:
Emerging Markets Are Ripe For Buying: India Focus
Emerging Markets Are Ripe For Buying: Brazil Focus
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