Here's an interesting question...
where are "Emerging Markets" emerging from and into what?
But before we answer that, what are
they? "Emerging Markets" refers to countries in the world which have
a less developed infrastructure. They tend to be those that are achieving
economic growth, but are not as mature as the developed world.
Emerging Market Groupings
To illustrate this it is worth
pointing out how Emerging Market Growth are often grouped together for
investment purposes. While it is always possible to invest in an individual
country if you know what you are doing, it is more common to group them.
For example:
- The "BRIC" countries include Brazil, Russia, India and China
- "Asia Pacific excluding Japan" means South East Asian countries like Indonesia, Singapore, China, South Korea, and so on
- "Emerging Europe" includes Russia and emerging Baltic countries like Ukraine, Latvia, Romania
Growth and Risk
Recent investment performance in EmergingMarket Growth has been better in many cases than in the developed world.
However, these markets are politically and economically more volatile than
their developed counterparts, and so investments are subject to higher levels
of risk.
The opportunity for Emerging MarketGrowth comes from aspects like the greater investment in infrastructure (roads,
water supply, etc.), availability of land and natural resources, and a growing
"consumer society" wanting to improve their standards of living.
The risks come from things like
bureaucracy which - along with corruption in some cases - hinders smooth
development. Human rights records can act as a drag on development, while
political instability and international friction can also dissuade investors.
Economic experience in managing aspects like inflation is also less developed,
although it could be said that banking systems are more stable than in the
"developed" world since they have not developed the convoluted
products and procedures which caused the credit crisis in 2008
All in all, Emerging Markets are
increasingly significant for investors, and there are plenty of opportunities
to invest when appropriate, both in equities of various types and in bonds
(fixed interest issues by governments and companies). For more information - http://www.bellwether-institute.net




