10
CHAPTER
GLOBAL INVESTING AND THE
RISE OF CHINA, INDIA, AND
THE EMERGING MARKETS
Today let’s talk about a growth industry. Because investing world-
wide is a growth industry. The great growth industry is international
portfolio investing.
JOHNTEMPLETON, 1984^1Chapter 1 demonstrated that the superior long-term returns of stocks
were not unique to the United States. Investors in many other countries
have accumulated substantial wealth in equities. Until the late 1980s,
however, foreign markets were almost exclusively the domains of native
investors and were considered too remote or risky to be entertained by
outsiders.
But no longer. The globalizationof financial markets is not just a pre-
diction for the future; it is a fact right now. The United States, once the
unchallenged giant of capital markets, is today only one of many coun-161(^1) Transcript of address delivered to the Annual Conference of the Financial Analysts Federation,
May 2, 1984.
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