Does that mean you are retreating into defensives with solid growth profiles and strong progressive dividend payout ratios?
Yes. If you look at our rankings, consumer staples are one of our top three sectors. You have a strong value streak when it comes to equities. I am presuming you have very little enthusiasm for emerging market exposure… We have no emerging market exposure. The worst reason in my mind to buy emerging markets is because you think they are going to grow quickly. Decades of investment experience shows strong growth just is not translated into equity returns. You buy emerging markets because they are compellingly valued with an attractive risk premium. You do not buy emerging markets just because you believe those countries will be a source of rapid growth. We rank all the countries and we have momentum effects and valuation effects and risk premium effects, and so on. Within our ranking, China is the bottom country in our emerging market ranking. India, Brazil and China are the bottom three. Interestingly, Russia is number one and has been in our ranking for quite some considerable time.
