emerging markets
emerging markets questions and answers
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Q: How did capital flows from the emerging markets cause lower interest rates in the West (particularly the US)?
I have read that large trade deficits in Western countries in conjunction with large trade surpluses in the emerging Economies (China particularly), was the main driving factor of lower interest rates? But I don’t understand why this caused the low interest rates? How exactly did the large flows of capital into the US and other advanced nations result in lower interest rates?
Can someone please explain the process and logic that would cause lower interest rates?
Thanks for any help.
A: Because large flows of capital is being injected into the US economy, what happens is that people or at least investors have more investment money. What then happens with that investment money is that it is put towards bonds and/or securities which then drive up the prices of those assets, causing an inverse change in interest rates to go down.
Q: Is more coca cola consumed in the developed world compared to the non-developed or emerging markets?
Basically need to settle an argument we are having, I reckon more is consumed in the developing world but does anyone actually know?
A: think so
Q: What are the biggest "emerging markets" and "emerging nations" in the world?
Need sources of reference please. Thank you.
A: Mexico City, Sao Paulo, Buenos Aires, Shanghai, Mumbai, Istanbul and
http://innovate.typepad.com/innovation/2007/03/cities_in_emerg.html
Q: Why does a hike in US Fed Rate impact emerging markets negatively?
The emerging stock markets,particularly in the BRICs,are largely influenced by FIIs.A hike in the Fed Rate leads to the FIIs selling,resulting in steep fall in the emerging markets.Why is that?
BRICs>>Brazil,Russia,India, China.
FIIs>>Foreign Institutional Investors.
A: Because a higher intester rate promotes more foreign investment within the US and promotes Americans to keep their money here, as a result, less money is invested into the rest of the world.
Q: Does Anyone See Investment Potential in the African Economy and Emerging Markets?
Is now the right time for investment on a diversified scale in Africa?
I 've added T. Rowe Price Africa & Middle East (TRAMX) as part of my portfolio. It is a very young fund(6 months) and I generally invest in funds that have been around for 5 years or longer. Any funds mostly African stocks are rare and I thought this has promise.
A: There's a lot of potential in investing in Africa, but I'd recommend doing so in small amounts. No more than 3-5% of your overall portfolio. But yea, Africa could be stepping up to become the next Brazil or Mexico, and if you get in now, you could be in for 40% yearly gains for the next 5-10 years!
How do you plan to invest in Africa anyways? Are there any ETFs or mutual funds focused specifically in Africa?? I haven't really researched that yet!
Q: Where can i find literature on investment risk management in emerging markets.?
which are the best online resources where i can find some valuable material relating to investment risk mangement in emerging markets.
A: search ebooks on 4shared.com
goodluck
Q: what are the chracteristics of big emerging markets ,why such markets are considered to be big to west?
what are the characterisstics of those countries to be considered to be big emerging markets, n why these markets considered imporatnt to the WEST?
A: First principal of investment - find new opportunities where the returns are high, and risk is comparatively low. (but high risk high returns). West has the big money and they invested in west only because they had ample opportunities out there and they didn't properly understand the risk in eastern countries. Now that East is offering higher returns and West is understanding the risk in Eastern countries, they are more willing to invest there to get those high returns. Take it as an example, in 04 the Malaysian market jumped by 50%. i.e. if u invested in even the stock index u would have gained 50% return in a year. U can't get such returns in west. But u have to properly understand the risk attached.
Q: What are the best ways in investing in emerging markets?
What should I invest in? Currencies,mutual funds,multi-national companies;ect
Good point Dr. Jim How about Bonds?
A: May i suggest you look at DRIP accounts.
These powerful investment plans are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.
They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. They are a must for any serious investor.
I strongly recommend looking into it. They are great plans.
Q: I want to invest in blue chip stocks of emerging market countries to get better return than indian markets,?
I am investing in stocks in India till now,but as you know, the stocks of countries which are developing faster than india also have huge potentiality of giving better returns,i have approximately Rs 10,00,000/ to invest
Some one please advise me how to do it and get best returns with least of risk.
A: look for stocks that are currenty priced not more than 10 times free cash flow. you can calculate this by getting the (earnings before income and taxes + depriciation - taxes)/common shares outstanding. also, look for the ones with strong Return on Equity and high Operating Margins. look for companies where its executives (preferably the CEO, CFO, COO) have big stockholdings. do not buy a company just becasue technical analysis tells you to do so.
for more stock market terms and formulas to get those that i have mentinoed aboive, got : investopedia.com
good luck and happy investing!
Q: what have been the characteristics of capital flows to emerging markets in recent years?
Can an economy handle capital flows?
A: Emerging markets have been on fire for years as the p/e has expanded. these capital inflows have allowed new economic development creating new jobs, new welth, and new products. This has allow for more exports.
Q: Recession in america looks increasingly likely. Can booming emerging markets save the economy?
I cant seem to find answers to this question on the internet. i already tried breaking it down into different parts but still cant find any good web sites to find answers to this question...
Help please...
A: The emerging markets are in Europe and Asia. That will do nothing for the dying labor market in America, or the shrinking dollar..The labor market consists of low end minimum wage employment with little or no benefits.. The drop in the value of the dollar,only make our exports cheaper.. Big Business only benefits from that.. Foreign Countries holding our debt bonds which is funding the wars, as the dollar loses value,may cash our bonds in and invest in the European Markets and Euros( Standard European Currency) A recession is likely, and the government will reduce interest rates in order to encourage the public to spend, however, with the average American holding $2000'00 in credit card debt, some upwards to $10,000.00 the spending spree will come to an end!! The wealthy 10% can't and won't spend to keep the economy rolling..And the income of the middle class is shrinking, due to the losses of jobs across the board.. Unemployment figures released this week , shows unemployment up to 5% a rise from last report!Confidence in the economy is waining, and the crisis in the housing market , which is still a big problem will continue and get worse thru 2008..Energy cost due to the energy policy of the United States or lack there of, will also aggrevate an almost untennable situtation.. Gasoline will reach over $4.00 dollars a gallon, and $5.00 a gallon is not impossible.. When a working person has to spend $50'00 to $100'00 dollars a week for fuel to get to work and home, there will be even less money available for normal basics..Its time for America to pay the piper!!! And Big Business and our government CAUSED this disaster!! SOLOMON
Q: Do you think it's time to sell my emerging markets fund?
I have 100% gains on them in one years period. Do you think there is going to be a correction in this area?
A: There might be a correction; it's very probable, but when is anyone's guess. If you sell, you'll have to pay capital gains tax.
I recommend hold. Even if there is a correction, in the long run emerging markets is where the big growth is, and even after a correction, in a few months you'll be back to where you were, and then some.
Q: Is capital movement from Industrialized to less developed and emerging markets?
A: capital movement is to where the roi is the greatest generally speaking. That can indeed mean that it will tend to move to developing economies from developed economies. I saw an interview tonight with the person in charge of developing the market for McDonalds Restaurants in China. They are building over 100 a year there. Get the picture?
Q: how to get daily data of FII investment in emerging markets?
I would like to know the daily data of Forgien Institutional Investment in the emerging markets such as china,India,brazil, Korea etc,. Please respond me by giving the URL of the website in which the above said data is avilable.
A: you can get currency data here ; http://netnew.tripod.com/ and search for online trading or finance page
Q: Subprime Crisis looming. Are your assets secure in emerging markets?
Subprime Crisis looming. Are your assets secure in emerging markets?
A: You might think that as emerging markets have little to do with problems in the US mortgage industry that they will be unaffected. This is not really the case. At times of crisis there is generally a flight to quality and an aversion to risk. Emerging markets are perceived as higher risk (as in higher volatility) in part because they are vulnerable to fund flows, both in and out. If US investors decide to dunp equities and switch into cash this will put pressure on emerging market stock prices because US investment funds in emerging markets are small as a proportion of total global investments but large as a proportion of the market capitalisation of relatively small emerging markets. This ebb and flow of funds is one of the reason these stocks are generally more volatile.
Some will argue that this will be counteracted by a fall in the risk free rates as the Fed cuts rates to bolster the US domestic market (this feeds through via swap rates or currency control systems) but in the short term this boost to theoretical valuations is likely to be more than offset by funds being withdrawn.