Hedge fund managers ponder implications of global rebalancing that could favour emerging markets in 2012

Eastern promises

balance

Global leaders emerged from the annual Group of 20 (G20) summit in early November 2011 promising a coordinated effort to address global imbalances and stimulate economic growth and job creation in 2012.

The global rebalancing envisaged by the G20 will encourage consumers in emerging markets to save less and spend more, compensating for declining domestic demand in deficit countries as they enter a period of austerity and continued deleveraging.

At the same time surplus countries are being asked to