My expectation remains that the market will begin 2009 in a positive way. The strong December can easily carry into January, and if no major blowups happen, a strong rally can emerge. The rally could be substantial if credit markets continue to improve. more

At the height of the emerging markets boom, some investors and analysts were especially vociferous in their claims that China and its brethren had already experienced such a decoupling--a shortsighted supposition jaded by equally dubious motives. I can’t emphasize enough that this decoupling process will occur gradually over time and is wholly unrelated to the desires of inexperienced analysts and market observers. more

There’s no question Asia will remain the world’s factory for the long term. The factories are built and have the capacity and technology to produce valuable goods for years to come. Once the global economy starts to grow again, these factories will return to full capacity. This is a long-term positive for Asia, too, but the development of a sustainable domestic demand driven economy--a burgeoning middle class--will be the real game-changer. more

The only places to find growth in 2009 will be the emerging market economies. All the developed nations are most likely looking at negative GDP growth next year. more

Indian technology stock valuations peaked in the first quarter of 2006. At that time, Indian technology stocks were trading at huge premiums to the rest of the region. Current market conditions have brought these stocks down in a hurry, and as a result they’re now trading almost in line with the rest of the sector. more

Last week was the first week of foreign investor net buying since May. Given the negative sentiment and depressed valuations, this is a positive factor. Although a positive week doesn’t make a trend, Asia remains the best long-term bet for investors. more