Powered by MOMENTUM MEDIA
Powered by momentum media
Powered by momentum media
nestegg logo

Invest

Is there money in emerging markets?

By
  • April 09 2019
  • Share

Invest

Is there money in emerging markets?

By
April 09 2019

The developed world has been dominating headlines with trade wars and populist uprisings, as the case for investing in emerging markets slowly gains ground.

Is there money in emerging markets?

author image
By
  • April 09 2019
  • Share

The developed world has been dominating headlines with trade wars and populist uprisings, as the case for investing in emerging markets slowly gains ground.

Is there money in emerging markets?

Typically, emerging markets have a growing workforce, as opposed to developed nations which have a relatively predictable labor force, notes Natixis Investment Managers.

Further, the trajectory for growth in emerging market industries is typically bigger.

“Most emerging market countries still have a ways to go in moving up the value chain,” Natixis’s report said.

Advertisement
Advertisement

“They can deepen their capital stock, which generates more output per worker,” the report said.

Is there money in emerging markets?

“Naturally, these higher potential growth rates across emerging markets support better earnings growth and stock price appreciation over time,” the report said.

What is an emerging market?

There is no consistent definition of an emerging market, but there are a set of factors which typically determine if a market is emerging.

For example, factors may include GDP, per capita GDP, functioning markets, liquidity and efficiency and infrastructure.

Quirky buys

The organic food sector is providing an interesting opportunity for investors in emerging Asian markets, according to Aberdeen Standard Investments Asia.

“Recent developments in the food and agriculture sectors are prime examples of the effect of wealth creation and other dynamics, such as urbanisation. These lead to greater domestic demand for everything from automobiles to washing machines. Linked to this narrative is the idea that, as people get richer, they also become more discerning,” the asset manager said.

“There are countless people in Asia who now buy their groceries from a supermarket (online as well as in a shop) rather than a street market; who consume more protein and fat in their diet; and more recently, have been asking questions about the food they eat and how it is produced,” the manager said.

You can read more about this here

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on X for the latest updates
Rate the article

more on this topic

more on this topic

More articles