There is an old saying in the world of global investing: "When the U.S. sneezes, the world catches a cold." Today, the U.S. is still recovering from a cold and U.S. consumer does not appear to be the engine of growth they once were. On the other hand, the huge population in China that is moving towards the middle class is a key driver of global demand. Hence, it seems that "When China sneezes, the world catches a cold” may be the more relevant saying today.
With today's news cycle focuses on issues in the middle east, news about China seems to be pushed to the background. However, it is possible that China may be facing some headwinds that would adversely impact an investor's portfolio and emerging market positions.
Read more about an approach to maintain exposure to the trend of an emerging middle class across the world while minimizing exposure to China at
http://seekingalpha.com/article/258012-don-t-let-your-emerging-market-position-catch-a-cold
This approach may be just what the doctor ordered to keep your investments in emerging markets from catching a cold if China sneezes.
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