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Emerging Market Rebound


HOPKINS: As reported earlier, we talked about the economy doing well. So let's have more on the economy and the markets. We're joined by our weekly Wall Street panel. Today funds manager Mark Mobius, economist Lakshman Achuthan. Chris Dixon and Christine Romans, are here again as well...

HOPKINS: Let's bring in Lakshman Achuthan. What are you seeing, in terms of economies? The economists had been so optimistic about what's going on, and yet the corporate leaders are very pessimistic.

LAKSHMAN ACHUTHAN, ECONOMIC CYCLE RESEARCH INST.: Sure. And I think that's actually quite understandable. The corporate leaders, the CEOs, are focused very much on their company's profits, which have plunged in the past year.

This has been the worst plunge in profits in over six decades. So it's understandable that they're gun shy about any sense of recovery, especially when people have been telling them that a recovery was imminent for a whole year, all through the recession they were saying that. Now that it's here it's almost like the boy who cried wolf. It's hard to believe.

But I do believe if you look at the cyclical leading indicators, that we have a solid, sustainable, durable recovery. And eventually I think it will be staring people right in the face and you'll see it.

HOPKINS: And do you agree with what Mark Mobius was telling us, that things look better around the world as well?

ACHUTHAN: Well, I think, especially for the emerging markets, they trade with the U.S. And so if we're having a U.S. recovery, those emerging markets that export so much of the goods that we purchased, they're going to do phenomenally well, compared to how they did when we were in recession.