US sub-prime mortgage crisis benefits developing markets

Emerging markets seem the unlikely beneficiary of the recent market turmoil impacting the western economies, sparked by problems with the US sub-prime mortgage market. Despite the volatility seen in markets of late, equities also remain favoured over bonds and cash. Sam Liddle, fund manager of the Gurensey-based Miton Optimal Global portfolio says the current lack of liquidity in the markets is not an unusual situation, noting that in the past it has led to a period of weaker economic growth and for more money to be funnelled into fewer areas. "We won't see a continuation of the past four...