Tag Archive | Africa

CIVETS: The Next Gateway To Growth

After the exceptional economic growth and prosperity witnessed by emerging markets, like China, India and Brazil, the CIVETS, Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa are expected to be the growth leaders in the next decade. 

As a whole, the CIVETS have appeal due to their large, young and growing populations, diversified economies, decent financial systems and political stability, when compared to their counterparties.  Additionally, the Economist states that all six nations are relatively unhampered by high inflation, trade imbalances or sovereign debt woes.  Read More…

African ETFs- A Diamond In The Rough

As the world seeks natural resources and economic growth, Africa’s economy may continue to witness expansion enabling the Market Vectors Africa Index (AFK) and the SPDR S&P Emerging Middle East & Africa ETF (GAF) to reap the benefits.

According to a report by McKinsey & Company during the eight year period from 2000 to 2008, the world’s second largest and second most populous continent witnessed a compound economic growth rate of 4.9 percent.  Although this growth is not as great as that witnessed by emerging Asia, it superseded that of Latin America and Emerging Europe.  Furthermore, even the poorest region of Africa witnessed GDP growth of 4.8 percent between 2004 and 2008.  Lastly, the report indicates that even though the overall global economy shrank by 2 percent in 2008, Africa actually grew by 2 percent during the same period.  Read More…

Four Reasosn To Look At Fronteir Market ETFs

Frontier market ETFs have been gaining investor attention as many seek to diversify portfolios and gain exposure to nations and regions that are up and coming and for good reason.

The actual definition of a frontier market is somewhat ambiguous, but they do offer investors the ability to access parts of the world that are likely to witness rapid economic growth in terms of GDP.  Another reason to consider frontier markets is due to their low, to no, correlation with emerging and developed markets.  This lack of correlation shelters these markets from the wrath that has been brought on by the sovereign debt crisis seen in developed markets throughout Europe as well as the socioeconomic climates of both the developed and developing markets.  Read More…

3 Reasons To Consider Frontier Market ETFs

Frontier market ETFs have been gaining investor attention as many seek to diversify portfolios and gain exposure to nations and regions that are up and coming and for good reason.

The actual definition of a frontier market is somewhat ambiguous, but they do offer investors the ability to access parts of the world that are likely to witness rapid economic growth in terms of GDP.  Another reason to consider frontier markets is due to their low, to no, correlation with emerging and developed markets.  This lack of correlation shelters these markets from the wrath that has been brought on by the sovereign debt crisis seen in developed markets throughout Europe as well as the socioeconomic climates of both the developed and developing markets.  Read More…

4 Commodity ETFs Destined To Prosper

By Kevin Grewal

As economies around the world continue to grow and develop, commodities are likely to remain attractive and for good reason.

Emerging markets are anticipated to grow at exponential rates in the coming year.  China is expected to grow at a rate greater than 8%, India is expected to grow close to 7% and other nations in Africa and Latin America are expected to show some signs of prosperity as well.  To add to this growth, developed nations like the United States are expected to grow which will further bolster upward pressure on commodity prices.

In fact, supply and demand forces have already been taken putting pressure on commodity prices evident through the recent uptick seen in the Batic Dry Index (BDI).  The BDI is an efficient indicator of future economic growth and production and measures the price of shipping dry bulk.   As international demand of commodities increases, the price to ship dry bulk generally increases as well. Read More…

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