Keynote Address: How Globalization has Re-Shaped the Investment Landscape: An Economic Outlook for 2009
Mark W. Yusko, President & Chief Investment Officer, Morgan Creek Capital Management, LLC
Yesterday, the session began with opening remarks from Keith Kirkpatrick, conference director for the Prepaid Expo, followed by additional remarks from Marilyn Bochicchio, President of Paybefore. Mark was introduced by Marilyn followed by warm applause from attendees.
Mark began his keynote presentation by discussing how global stocks are down in some cases as much as 99%, but even aware of this investors continue to choose to keep investing in US markets. He points out that while the economy is down, this is the best opportunity to invest but the issue is where to invest.
He points out that the current crisis has people hoarding cash rather than spending or investing. The result is that last year has been the 2nd worst year for the markets. Mark quotes, Mark Faber who said, “A surplus of cash leads to a shortage of sense.” Which is exactly what happened in Japan’s case during the mid to late '90s.
Mark then begins to relate the changing reality of the world economy that positions BRIC countries such as China, India, Russia and Brazil as ascendant, quickly expanding market economies. China in particular will outpace even the US over the next 20 years.
He points out that our economy has become increasingly like a 'banana republic, “writing checks that our body can’t cash.” With this flux in the global economy he clearly makes the case that now more than ever, is the best opportunity to invest markets outside of the US, particularly emerging, developing nations.
Here’s a clip from Mark W. Yusko’s keynote speech:
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