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By HaleStewart February 11, 2014 8:34 am
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OECD Leading Inidicators Point to Developed/Emerging Market Growth Divergence

Above are several graphs that show the OECD's leading indicators for the EU, Japan and US.  Notice that with the exception of China, all are moving higher at solid rates.  This indicates developed markets are all expanding more or less in unison. 

Compare the developed market LEIs to the BRICs above.  Notice that all the BRICs are experiencing a slowing. 

This highlights the fundamental problems facing the BRICs -- which are all starting to confront internal growth problems as old policies for growth fall flat but no new policies are emerging.  Not helping is the Fed's tapering program which is leading to a capital flight from these countries. 

Hale Stewart is a former bond broker who has been writing about economics and financial markets since 2006 on the Bonddad Blog.  He is also a tax attorney with a domestic and international practice while also forming and managing captive insurance companies for US companies.   You can follow him on twitter at:@captivelawyer

 

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