MasterPlan:The only reason GLOBAL
growth stocks should plummet (for fundamental reasons) is if
there's a global recession. Or if the emerging economies
are severely impacted by the US slowdown. And that's still not
entirely clear. Regardless of what happens to the US, the
emerging economies will likely fare much better. Unless inflation
gets the better of them.
I have my doubts about emerging economies resisting the slowdown--which really isn't just US any more; Britain, Spain and others are following suit. There's a good recent article in the WSJ--if they'll let you read it--about the impact on the low-priced sweater industry in Honghe of the strengthening Yuan plus rising costs of energy, wages and materials; the result being a very rapid decrease in profits and the closing of a number of factories. I've pasted the summary of the article at the bottom.
So it looks like GG will be hit, at least in some areas.
DrH
NOT CHEAP ENOUGH?
• The Situation: China's
manufacturing sector is absorbing rising costs for labor, energy and
materials. Makers of low-cost goods are hit hardest, their thin margins
giving them little wiggle room.
• The Impact: Workshops and factories are closing in one-industry towns like Honghe, a sweater-making center.
• What's Next: Many of
the low-cost makers that drove China's growth will have to shut down,
consolidate or compete on strengths other than price.
