Developing countries are driving global growth and the economic potential of emerging markets is not fully being exploited, advises investment experts over at Madison Street Capital. Brazil, Russia, India, China and South Africa are already strong global players, and they have excellent resources, and that potential is well used, but not by the countries themselves, but mainly by foreigners. http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=116516616
What Are Emerging Markets?
Emerging Markets designate a transitional stage between a developing country and a developed country. Coined in the 1970s in connection with the rising of Asian industrialization, emerging markets became known as a newly industrial rising country. Today, experts typically refer to countries like Brazil, India, China, Malaysia, Mexico and South Africa, to name a few, as an emerging nation. True, many of these countries are already partly industrialized, yet they are still in a phase in which they need more changes.
The Attraction Of Emerging Nations
All these countries have an excessive dependence on exports, and very clever foreign trade policies. For example, if you look at Brazil, they are in the worst economic crisis right now. Their unemployment rate is high and there is social unrest, yet Brazil’s raw materials are economically active. “There is also increasing debt in many industrialized countries, therefore fiscal flexibility and dependence on foreign financing are commonplace,” say Madison Street Capital advisers. Some of these financial markets offer high economic growth at often higher interest rates, which is an attractive package for investors. “The downside, of course is the risk involved, but that’s why investors diversify.”
Another attraction of emerging nations are precious metals. Precious metals like gold, silver and platinum as well as raw materials such as water, iron, zinc, oil and gas form a fundamental prerequisite for present day prosperity. Almost every industry depends on these materials. Metals can be found in automobiles, electric motors, buildings.
World Class Professionals
Chicago-based boutique investment firm, Madison Street Capital, provides strategic financial advice to create wealth and value for their clients. Mergers and acquisitions, management buyouts, and restructuring of debt, and other distressed advisory services are just a few of the financial advisements the firm offers to middle market businesses. Emanating from some of the top Wall Street and accounting firms, the team of experts have over a billion in transaction experience and a proven track record of exceptional outcomes.