Devoted to understanding the basics and fundamentals of investing

Lynn comments that with Emerging Markets growing at double digit rates, the pie seems to be getting larger.

Emerging markets have been pursuing policies that have allowed their economies to grow at healthy levels.  The world as a whole is concurrently in a period of growth in 2006.  This is true enough that the major central banks may end up raising interest rates simultaneously.  Lynn's observation seems to be correct.  When the world economies grow together the pie does get bigger.

It is prudent to remember that even rapidly growing economies are subject to business cycles and that while their economies should avoid the disasters of the 1980s and 1990s, they still may turn down.  They will be more volatile than the more developed economies.