S&P Versus Emerging Markets

let us today discuss about the emerging stock markets versus USA’s Stock market. According to the top most investors around the world, The S&P will outperform than the emerging markets (India & China) in the year 2010.

And that’s why they are taking positions back in the US Stock market. The reason for thinking like this is obvious and 100% logical. See the below diagram.

The above is the diagram of US Monetary Base. According to the diagram since August 2008, US Government has doubled it’s monetary base to almost $ 2 Trillion from just $ 800 Billion. And the Federal reserve has printed this much amount of money out of thin air only.

And that’s why now, the US Dollar is a terribly flowing currency in the world. US government has never printed this much amount of money in past more than 100 Years that it has printed in last just 2 years.

This newly printed dollars are diluting the purchasing power of the existing dollars in the circulation.

And because of this money printing activity of the US Government, it is likely that the S&P will outperform any other emerging market stock exchange by several folds.

USA has a control over the Monetary system. It can print as much money as it want and no other country or government around the world can raise the question. Global Investors are buying stocks of S&P right now because they feel that, US Stock market will out perform than the emerging markets in the year 2010.

What Do you think? Is it Right to print Money like this? Will printing money solve the Financial crisis in the world?…!!!!