Growth stocks in developing markets will outperform

ON EMERGING MARKETS

Lazard's Kevin O'Hare believes investors who feel we are entering a new period of slow economic development should consider investing in growth stocks.

The emerging markets continue to lead the world in this cycle and are becoming dominant players in the global picture. The contrast in the prospects between the developed and emerging worlds could not be starker. While the US, Western Europe and Japan seem trapped in a cycle of low and even negative growth, many emerging markets are expanding. The growth opportunities offered by the developing markets is attracting the attention of M&A players, and emerging market-targeted M&A has recently overtaken European activity for the first time. Growth companies have tended to trade at a pr...