Last week, we discussed a dual-themed investment strategy. (1) We believe emerging markets, a market segment that underperformed for the past two decades, are likely to outperform the developed markets in the decade ahead. (2) We do not see the fall of the Iranian government as a "fall in the wall event" which characterised the fall of the Berlin Wall and the fall of communism. In that event, the Russian government refused to fire on the people, setting them free. In the case of Iran, we see the government going scorched earth. We think they will continue to fire at the citizens, as the government has already killed 30,000 protesters and has attacked their Arab neighbors.
