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Dale Jackson

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Get ready for a changing world

Dale Jackson

2008 goes down as a year when those who talked-the-talk not only couldn't walk-the-walk, but stumbled flat on their faces.

If we can draw any lesson it's that we really don't know where the markets are heading - although it's safe the say the world is in the throws of a seismic shift. The time is right to step back and see where the planet is heading.

The economic monolith we've known as the United States of America has choked on its own excess. Wealth and power has not only been diminished but it is spreading to developing parts of the world hungry for a piece of capitalism pie.

Some multinational corporations that understand this reality are adapting to this change, and Standard & Poor's is taking notice through its Global Sector Indices. The 10 sector indices focus on 38,000 companies on more than 90 global exchanges that conduct their principal business activity on a global level and are traded as part of a broad global trend. Revenue is a key measure but earnings and "market perception" are also taken into account.

Over the past decade emerging economies such as India, China, Brazil and Russia have out-performed the developed world but the Indices are designed to adapt to the changing investment world. Companies, sectors, industry groups and sub-industries are reviewed at least once a year to see if they still meet S&P's global standard.

For investors wanting to get in on a changing world, Barclays offers a series of exchange traded funds (ETFs) on the New York Stock Exchange that track the S&P Global Sector Indices:

Dale Jackson has been a producer at Report on Business Television since its launch in September 1999.

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