Yesterday, an article in the Financial Times shed light on the global implications of President Obama’s recent trip to Copenhagen for the climate summit. President Obama arrived for a meeting on global climate change (check that debate at the door), and instead, became a spectator of the global economy at work. The FT article focuses specifically on four developing nations that are emerging as dominant global forces – India, South Africa, Brazil and Turkey.
Mr Obama must have felt something of a chump when he arrived for a last-minute meeting with Wen Jiabao, the Chinese prime minister, only to find him already deep in negotiations with the leaders of none other than Brazil, South Africa and India. Symbolically, the leaders had to squeeze up to make space for the American president around the table.
Let’s skip over the political implications of this scenario to examine what this means for US investors. As a US-based investor, we are presented with 2 options: we can participate in a global economy or we can shut ourselves off from it. Andy’s article from last week highlights exactly this point. Only 3% of assets managed by US fund managers are exposed to emerging markets.
Luckily for us, and unlike President Obama, we have no political ties that bind us. We are free to put our money to work where we want to, and this economic freedom allows us to participate in developing and emerging markets as we see fit. The Systematic Global Macro Account and the Arrow Tactical Fund both have the flexibility to invest in the global market without restraints. Don’t let yourself be shouldered off the table.
Click here to visit ArrowFunds.com for a prospectus & disclosures. Click here for disclosures from Dorsey Wright Money Management.
