As everyone is aware the domestic financial environment is going through a turbulent stage to say the least. Individuals who have got the disposable income to save are getting worthless return of investment from their respected banks, disregarding who they are, usually domestic.
Current UK banks are offering a maximum ROI of 1% at the moment due to inflation which is currently at 2.8%. So basically if you are receiving a return on investment of 3% and with inflation standing with a knife at 2.8% then it is clear to say a yield for someone accepting 3% I.S.A would see a real interest of 0.2%
The codes and conventions of investment is that a group of smart money find a cash cow nation, this previously was one of the “Bric” nations (Brazil, Russia, India and china ) reaching an average GDP of 8% in 2012, post economic pinnacle, a whole 8.5% more than uk’s depressing -0.4% GDP (2012).
The current hot cake regarding investment is new frontier emerging markets who continue to attract the attention of investors the world over. Emerging markets are those of lesser-developed countries, which are beginning to experience rapid economic growth and liberalization. Examples of these new emerging market countries include Ghana, Mexico, Singapore and Turkey; these countries are described by a growing population experiencing a substantial increase in living standards and income, rapid economic growth, and a relatively stable currency.
Often, emerging market countries impose strict limits on foreign investment in an attempt to limit foreign ownership of domestic companies. Investors may be prohibited from owning more than a fraction of any one company, and they may also be restricted from repatriating profits from investing activities which is why it is essential to use an experienced company.
Along with high potential returns, emerging markets also offer diversification benefits. Because these markets tend not to move in tandem with those of developed countries, they may be rising while other markets are falling. Hence, they can help reduce the overall risk of a portfolio. Based on these factors, many financial advisors recommend long-term investors allocate 3% to 10% of their stock portfolio to emerging markets, depending on their investment goals and tolerance for risk.**
**These allocations are presented only as examples and are not intended as investment advice. Please consult your financial professional if you have questions about these examples and how they relate to your own financial situation.
Investing In Emerging Markets: Offering an Opportunity for an Entry Path
Be aware that emerging markets in general tend to be volatile, sometimes even when no serious problem presents itself in a specific market. Investors in emerging markets are therefore advised to potentially reduce risk through diversification among many different markets, and to maintain a long-term view.
A good way for an individual to efficiently take advantage of emerging markets is through local Companies like London based Reflex Eco Group who have track record in dealing in these markets, with business opportunities concentrating on assets in these markets around the world or in a specific country or region. Some global and international bank funds tend to hold a small-medium percentage of their portfolio in emerging markets to capitalize on these gains.
Gold, Silver, International, Investment, savings, GDP, earn money, Portfolio diversification
- Current Account: A Misused Compass Points Awry (blogs.wsj.com)
- Emerging Markets, More Attractive than Ever for Institutional Investors (business2community.com)
- Number of the Week: Total World Debt Load at 313% of GDP (forum.prisonplanet.com)
- Nate Suppaiah on Emerging Markets (axial.net)
- J.J. Zhang’s Winner Take All: The hidden risks of frontier-market investing (marketwatch.com)
- Central Banks Want to Hold Emerging-Market Currencies (blogs.wsj.com)
- Beyond The Bellwethers: 3 Unique Emerging Market ETF Trends (etfdailynews.com)
- China’s Building, but Will They Come? The Space Race (businessinsider.com)
- 3 Reasons To Explore The Frontier ETF (etfdailynews.com)