Where in the World to Invest?

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July 3 (Bloomberg) -- On today's "Chart Attack," J.P. Morgan Funds Global Market Strategist Andres Garcia-Amaya discusses investing overseas with Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

We will bring you a series of charts and hope it will make you a little bit smarter and some money.

I want to take you right to this chart.

You have real gdp growth on this side.

That is the y axesis.

And you have debt down here on the x-axis.

Emerging markets versus developing markets, not what you would have expected.

All the emerging guys are where you want to be.

Gdp growth than low debt versus everyone over here, including the u.s., by the way.

We have a lot of debt and we are not growing quite as fast.

Talk us through this.

The balance sheet of the emerging market world is a lot stronger than the developed world.

From an emerging market perspective, you want to look at that as a potential investment opportunity.

Right now, technicals are against it because liquidity is joining up there.

This is fascinating.

All the emerging markets are on that side of the chart, where there is lower debt, versus all of the developed markets with a lot of debt.

It is so contrary to what you would expect.

Look at portugal and italy at the bottom right corner.

There is still an issue on why they still matter in the global landscape.

You can even see japan on the chart.

It's off the chart.

Question that is something you need to keep in mind when people are bullish on their efforts.

So the emerging markets are in the quadrant of the chart where you want to be with more growth than less debt.

Yet they are underperforming.


This is looking at their balance sheets.

If you look at their income statements come earnings haven't been that strong because labor costs have risen significant a faster than in the developed world.

It all boils down to labor costs.

So in some ways, the recession has been good for u.s. competitiveness because, ironically, it has lowered our cost of production.

You do not see a lot of people knocking on their bosses door for a raise here in the u.s. in china come aid has grown 50% year-over-year.

That hurts earnings.

So if we can get more americans back to work, not necessarily getting raises, that would be the ideal.

From japan, soft drink ipo

This text has been automatically generated. It may not be 100% accurate.


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