Why emerging markets matter

By Staff | August 23, 2011 | Last updated on August 23, 2011
2 min read

North Korea kicked off a four-day international trade fair in its northeast region, site of an economic development zone. North Korea and China broke ground in June on the Rason economic zone as part of an effort to revive the country’s economy.

Of course, given recent tightening of United Nations investment restrictions aimed at the Communist state, advisors might want to consider other options for clients seeking emerging markets exposure.

Here are some more practical options:

India offers second chance for investors As an underinvested and overambitious nation, India continues to emerge as one of the most promising investment destinations in the world.

South Africa basks in glow of BRICS addition With its accession to the unofficial club of high-growth emerging economies, South Africa has now emerged as yet another symbol of the shift in global economic power. Some analysts broadened the BRIC constituency late last year to BRICS, the last initial representing South Africa.

Investors flocking to Latin America In a world where leading economies are saddled with a tenuous recovery, Latin America is proving to be a happy hunting ground for global investors always looking for the next growth story.

And here are some articles containing perspective and conversation starters to help you discuss emerging market opportunities with interested clients:

Canada missing the boat on emerging markets There is a growing sense of urgency in the air about Canada’s need to broaden its economic participation by adopting a more aggressive approach to doing business in emerging markets.

U.S. woes could boost emerging markets As nervous investors grapple with the U.S. credit rating downgrade and the resultant market uncertainty and panic, the world continues to be reshaped. With renewed vigour, advocates of emerging markets are pointing out deteriorating debt metrics in the developed world, contrasting it with improving debt metrics in much of the emerging world.

Emerging markets headed for soft landing Decelerating growth, in the face of global economic fragility, the Japanese tsunami and amid the recent impact of strong inflation, suggests that world trade growth may have peaked in the first quarter of 2011.

Canadians still shy toward emerging markets Canadian investors may recognize the strong growth potential of emerging markets, but when it comes to investing in these economies, few are taking full advantage of the opportunity, according to Franklin Templeton Investments Corp.’s latest national research.

Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.