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I think, that the lower growth in emerging economies should be good for their stock market's. Every time there have been a great boom in the stock market's, Japan in the 80-s, US in the 90-s, 20-s..Growth rates in the economies have been around 4 % after coming down from a level more in line with what it was in India and China. That 4 % level seems to be the magic number for huge stock market booms. They certainly have room to stimulate their economy with rate cuts. And they certainly don't risk a liquidity trap, like the US, As they also have a lot of room to lower rates in India. Maybe their growth could come down to around the 4 % level, and they could have the type of slow, 1920-s style of cycle, in countries like India and China.
I think, that the lower growth in emerging economies should be good for their stock market's. Every time there have been a great boom in the stock market's, Japan in the 80-s, US in the 90-s, 20-s..Growth rates in the economies have been around 4 % after coming down from a level more in line with what it was in India and China. That 4 % level seems to be the magic number for huge stock market booms. They certainly have room to stimulate their economy with rate cuts. And they certainly don't risk a liquidity trap, like the US, As they also have a lot of room to lower rates in India. Maybe their growth could come down to around the 4 % level, and they could have the type of slow, 1920-s style of cycle, in countries like India and China.