Emerging Markets – Decoupled From The Crisis?

Via Emerging Markets Insight, a highly interesting pair of charts analyzing the results of Frontier Strategy Group’s proprietary model to test the assumption that “emerging markets are decoupled from western economies (G7)”:

“…In 2008, we found that certain markets such as Nigeria and Peru were not only decoupled but provided multinationals with consistently high growth opportunities.  Conversely, growth in markets such as Turkey, were highly dependent on a recovery in western economies.

Surprisingly, in 2011, our model shifted to indicate that emerging markets are no longer thought to be as decoupled as before. Very few markets such as Morocco and Indonesia provide above average growth opportunities with less dependence on the status of western markets.

In 2008 we built a model to understand the global impact of a recession:

2011 data shows markets are more coupled than before

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Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.