Proponents of this view suggest that when investors get scared, they sell their riskiest assets (among them investments in emerging and pre-emerging markets) in search of safe havens, as they reassess their appetite for risky assets. It is therefore felt that now, with the sub-prime crisis, this interest will dry up.
Little or no impact The other thought school is of the opinion that our economies appear resilient, and will weather the ongoing market correction in the industrialized world. It has also been speculated that lower demand for products in the developed world would be balanced by increased demand in developing countries.