Economies running current account deficits to underperform those with current account surpluses
A more nuanced approach to EMs is imperative. Those with better ability to generate productivity and domestic demand will outperform. Commodity exporters will suffer more than the rest. India and Mexico will outperform. Brazil, South Africa, Russia to underperform. China will remain a laggard. (LSR Special Report 11th December 2013)
Real GDP consensus forecast for 2014 and 2015 revised up for India and down for Brazil, China, South Africa and Russia. Indian equities outperform EM equities while Brazilian equities lose out. The same holds for FX as well..