The BRIC countries were hyped to be the top investment destination before the Global Financial Crisis. As the craze for emerging markets soared Wall Street came up with a nice-sounding term BRIC to denote the next emerging countries of Brazil, Russia, India and China. The simple catch phrase caught on and investors couldn’t get enough …
Current Account Balances is an important factor to evaluate the health of an economy. A surplus indicates that the country is in a better financial shape and lends money to other countries. A deficit implies that the country is a debtor to other countries and institutions. The chart below shows the current account balances for …
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Emerging market banks offer distinct advantages over their developed world peers. Other than the obvious diversification benefits, banks in the developing countries tend to have higher growth and profitability rates leading to much better share price appreciations. For instance, in most developing markets a few banks dominate the industry and hence have higher pricing power. …
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Many emerging market stocks have performed poorly so far this year. After a strong run until last year, emerging markets have declined this year due to a multitude of factors including rising oil prices, impact of trade war initiated by the US, rising US dollar, etc. Hence some of the major markets of the developing …
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Emerging markets also tend to bounce back sharply after major market declines. This phenomenon is similar to developed markets where dramatic falls are followed by strong recoveries in the following months and years. The table below shows some large emerging market crashes and the ensuing rebounds: Click to enlarge Source: Emerging-Market Resilience, Franklin Templeton Emerging markets …