It seems better to me, then, to invest a significant portion of our cash in stocks or funds that can benefit from the emerging markets' superior dynamics. Whereas earlier I might have wanted a 10-20% exposure to global equities, now I prefer 30-40% and would not mind if that rises even to half of our net asset value, with the majority of such holdings devoted to emerging markets.
I define emerging markets a little differently than might be generally assumed, however. If a country has a large supply of commodities needed for the inevitable growth of emerging markets, then its growth seems assured and warrants inclusion in a portfolio of nations likely to reap big returns from emerging market dynamics. Australia has been included based on this criterion.
And if a substantial proportion of a nation's population is as yet not as well off as is more typical in middle-class cultures or economies, but individuals in that segment have on average the means to get ahead, their potential upward mobility lends emerging market dynamics to even a large and established economy. Thanks to both immigration and higher birth rates, such is now the case, in my opinion, with the rapidly growing Hispanic community in the United States (already about one-sixth of our population and projected to rise further in coming decades). So, despite much of the doom and gloom we hear of late among folks in and around Washington, D.C., our country stands to benefit greatly in growth over the next several years from this factor.