Frontier Markets For Dummies
Gavin Graham, Al Emid
Expert advice on making sound investments in frontier markets
Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa (CIVETS) are six countries poised to be the next group of developing nations to see an economic boom. These countries, similar to the BRIC (Brazil, Russia, India, and China) are currently reaping the rewards of a growing economy.
Frontier Markets For Dummies provides an honest look at the CIVETS countries and explores ways that savvy investors can prepare to take advantage of the emerging economies. You'll get the lowdown on the basics of frontier market investing, how to weigh the potential with the challenges and risks, factors that affect investments, and much more.
- Explores the growth in both BRIC and CIVETS countries—and how investors can prepare now to take advantage of the markets
- Explains foreign governance and laws
- Includes coverage of ways to invest in frontier markets
Frontier Markets For Dummies provides investors at all levels with the information they need to take advantage of the latest group of emerging markets.
and liquidity. Emerging Markets An official at the International Finance Corporation (IFC), the equity arm of the World Bank, first coined the term Emerging Markets in the early 1980s, in part due to a desire to replace the negative phrase “less-developed countries.” Chapter 2: Examining the Appeal of Emerging Markets Investment In the MSCI Emerging Markets Index, MSCI classifies the following 20 countries as Emerging Markets, which includes such large and well-known countries as those in the
Market investments have a lack of correlation to developed markets and to each other, we mean that they don’t move in sync with investments in developed markets and with each other. You may remember (but you might like to forget) the political wrangling in Washington that occupied headlines and everyone’s attention during the fall of 2013. While the American stock market gyrated every time a news report suggested that the Republican Party and Democratic Party chieftains and the President had
refers to the possibility of permanent loss of your capital caused by the underlying factors that create some of the ups and downs. Because Frontier Markets do not correlate with each other and with developed markets, you can reasonably expect that if part of your portfolio zigs, the other part will remain stable or even zag in the opposite direction. Faster growth In these markets, there are more opportunities for faster growth than available in the developed markets. This is due to a number of
the world’s population, including some of the largest and most economically successful nations. Chapter 5: Political Systems and Market Players Transparency of information The basis of capitalism is transparency due to freedom of information. If investors cannot trust the numbers produced by companies in which they are investing, the market system would grind to a halt. How do you know how to value a company, or what its shares are worth, if you have no reliable means of ascertaining its
capitalizations below $10 billion. Democracies It is difficult to generalize about Frontier Market democracies. They range in size from Nigeria, Pakistan, and Bangladesh with 170 million, 193 million, and 162 million inhabitants, respectively, ranking among the ten largest countries in the world by population. This group also includes such small though relatively well-off southern Africa states as Botswana and Namibia with just over 2 million people each, and the Baltic states of Estonia,