The Future of Emerging Markets

With the UK facing budget cuts and the possibility of quantitative easing (QE2- printing money) combined with inflation it would be easy to be nervous about the financial future. Investors in emerging markets such as Brazil, Russia, India and China have a great deal of issues to think about.

A good video from Legal and General is available to watch.

Brian Coulton, emerging markets strategist at Legal & General Investment Management, believes a big chunk of the $600 billion the Federal Reserve is pumping into the US economy will find its way into emerging markets as investors strive to get a return on their money when interest rates remain at record lows in most of the developed world.

What does this wall of money do to inflation in places such as Brazil, Russia, India and China? And what does the possible threat of an asset bubble in these investment markets mean for investors.