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Internal Demand Will Drive Emerging Markets Forward

Jason Stipp

Jason Stipp: A question for you on growth prospects, and you had mentioned earlier about the growth prospects outside of a company's domicile. There has been a lot of concern recently about potentially a slower growth environment worldwide, especially in developed countries that are facing debt burdens and potentially austerity measures in some cases.

When you are thinking about the international growth prospects of the stocks that you are looking at, do you have concerns about what those prospects might be? Because a lot of folks are looking to the emerging markets as a growth engine when maybe developed markets face slower growth. Do you think that the growth expectations for emerging markets are overblown and how do you think about some of the headwinds that might be facing companies in these areas?

Taizo Ishida: I think that's true for the commodity countries: say, Brazil or Chile, Russia maybe. But if you talk about China or India, or the rest of Asia, there are no resources to speak of. As a matter of fact, I think the consumption story is so domestic-oriented in China, I think most companies really doing well in China are the domestic-oriented companies.

India, for example, power is not there, shortage power, credit is not there, basic infrastructure is not there. So this has nothing to do with global economy direction. ...I think mostly really internal sort of needs and that's what they need. So, obviously, the economy is important in the macro basis, but if you look down to the actual – what the company is trying to do, it probably is not as important.