EM growth stocks are set to outperfrom

Lazard's Kevin O'Hare explains why investing in developing economies is the next best play.

The macroeconomic outlook continues to favour emerging over developed markets, due to the former’s favourable growth rates and healthier banking systems. We do not expect the eurozone debt crisis to impair the overall emerging markets domestic-demand-driven growth outlook in most countries, as growth remains solid and monetary conditions remain quite loose. Most emerging market economies will continue along a path of sustainable recovery. The growth advantage of emerging markets relative to the developed world should continue to attract significant capital inflows to various asset cla...