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In the latest issue of "Global Investor" from Credit Suisse, analysts and external specialists take an in-depth look at so-called frontier markets - developing economies that have only recently caught investors’ attention. Credit Suisse Research has developed an index to identify global frontier markets. By investing in frontier markets at an early stage, investors can exploit the advantages of early market entry in countries such as Vietnam, Peru or Kazakhstan over the long term and thus participate in their economic growth.
Traditional emerging markets such as the BRIC countries (Brazil, Russia, India, and China) can look back on exceptionally good economic performance since 2000…. their valuations have risen and the MSCI Emerging Markets index has gained in value compared to the MSCI World index in 2007.
Nowadays, however, the traditional emerging markets are no longer influenced by the same economic momentum as in previous years. Some countries that are still generally referred to as emerging markets, such as Korea, now have a very similar economic profile to the developed countries. Investors should now be focusing on the "new" emerging markets - the frontier markets…
Therefore, Credit Suisse Research has developed an index which identifies frontier markets according to the following criteria: (i) macroeconomic potential; (ii) population wellbeing; (iii) financial market development; and (iv) political stability. Each country is then rated based on it...................... To view our full article Click here
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