Why do investors see great potential in emerging stock markets?
It is reported:
• Now Intelligent Investors see opportunities in South Korea, Indonesia, Turkey and other less known emerging countries
• Sovereign Wealth Funds from the Middle East and China are expected to grow to $12 trillion worldwide.
• Worldwide investments are expected to increase to $300 trillion in a few years time. .60% of that growth is expecting from new global markets.
• Money is flowing into international funds especially over the fast weeks.
Thank you for spending time to answer my question. I also thanks and appreciated highly for answering my previous questions. I wish you everybody to have prosperous investment opportunities.
Answers
2775 points
Oldman answered 2 years ago …
On a world basis, there are major investments being made in Africa and the MidEast by capital inflows from Dubai, Temasek, China, and other countries that have acumulated dollars, or other currencies in trade. Those investors wish to diversify their investment destinations away from dollar-denominated securities, and perhaps to assure a source of their commodities (vital resource needs) via direct purchases of foreign companies or long-term contracts.
In particular, China has extensive investments in the Sudan, and in Australia, for oil, timber, grain, uranium, iron ore, etc.. Petrodollars spent by China (and the U.S., and Japan) to purchase oil are also diversifying their destination, so as capital grows among nations, it tends to flow into new and previously parched areas.
116 points
CollegeKid answered 2 years ago …
Investors see great potential in emerging stock markets because many of these overseas companies in South Korea, China, India have huge markets to sell to. The companies in these markets have almost unlimited potential as more and more people in these countries join the middle class. These countries through trade have generated more spending power, and since they are still developing, there is ooodles and ooodles of money to be made.
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