What happens when Capital Flows to Emerging Markets Stop Suddenly?

One of the biggest risks of investing in emerging markets is that capital inflows from advanced countries can stop suddenly. This can be due to many reasons such as political problems, higher possibility of higher return in advanced countries, over-heating of the emerging market economies, etc. When capital inflows into emerging markets stop suddenly the …

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Emerging Markets: Will Latin America Be The Winner This Year?

Emerging market economies are projected to perform better this year than the developed economies. Based on the year-to-date (YTD) performance of the foreign stocks trading as ADRs in the US, it appears that the above estimate might come true. The Bank of New York Mellon Asia ADR Index is down 15.25% YTD and the Bank …

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BRICs: Time To Take a Fresh Perspective?

The acronym BRICs refers to the emerging economies of Brazil, Russia, China and India. It was coined by Goldman Sachs in 2001. Today The Financial Times had a piece titled “S&P; calls for Brics break-up“. The gist of S&P;’s call was that these countries should not be grouped together now as a single asset class …

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India,China stock market bubbles !! Time for a (bubble) bath?

While the US markets are in the dumps for many months now due to the sub-prime mess, the stock markets of China and India are on fire. Last year the Shanghai market doubled and the index in the Bombay Stock Exchange increased by over 45%. Before you jump with both feet into these red hot …

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