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We’ve seen a real bloodbath in the emerging markets, but multinational consumer stocks that have been in these countries for a long time look largely insulated from both Chinese sluggishness and the euro madness. We talk about defensive growth today on Trading the Globe (10:20 ET, CNBC).
Now that there are two broad exchange-traded funds out there that track emerging markets consumer choices, traders need to make a strategic choice of their own: bet on drinkers or bet on drivers.
Writing in The Washington Post, Pimco head Bill Gross warned of the effect the falling euro will have on American companies such as The Procter & Gamble Co. (PG, quote), The Coca Cola Co. (KO, quote) and Dupont (DD, quote), among others, that derive much of their earnings from Europe. Is this overblown?
Along with a solid infrastructure, stable financial system, public education and vibrant political system, add the ability to host the tour of a rock and roll band to the list of signs that an economy has reached an advanced level of development.
Hyper-inflation in Venezuela reached 26.9% for the year to October against a rate of 29.1% in 2010. Price controls took effect on November 22 as the government tries to slow the country’s fastest multi-year inflation spike on record — and there are rumors of nationalization for local units of multinational consumer good producers.
