2012 THE YEAR OF THE EMERGING MARKET CONSUMER

With demand from the developed world tepid at best, trade between emerging markets themselves will accelerate with an emphasis on the new and leisured classes in such markets as Brazil, China, India, Indonesia, Korea, Malaysia,  Mexico, Russia, Turkey.

By and large, emerging market consumers, companies and governments are starting with low levels of debt, there is 'no debt overhang' and no need for the pain of austerity and deleveraging the developed world is suffering. In other words, most emerging market economies still have to a way to run.

Investors wanting to profit from these developments can go about it one or 2 ways: They can buy shares of emerging companies that sell primarily to the domestic market. Domestic companies in emerging markets typically capture more than half of their local market share. Another way is to buy shares of Western firms that get a large percentage of their revenues from emerging markets for example: Kerry Group, Sabmiller, British American Tobacco, Heineken Holding, Sipef NV, Danone, Anheuser-Busch Inbev, Henkel AG &Co, Carlsberg, Remy Cointreau, Heineken NV, Beiersdorf AG, Diageo, Reckitt Benck AG, Pernod Ricard, Royal Unibrew A/S, Imperial Tobacco, Pz Cussons, Austevoil Seefood, Parmalat SpA.