Sunday, December 26, 2010

Emerging Market

Emerging markets refer to developing countries with the potential for high growth, but typically also higher volatility relative to developed markets. The most common example of emerging markets is the "BRIC" economies (a term coined by Goldman Sachs), which refers to Brazil, Russia, India, and China. The kinds of properties that make emerging markets compelling is things like large natural resources, a large and growing population base, urbanisation trends, growth wealth and consumerism, and simply the transition of people from poverty to middle class e.g. "catch-up". There are funds which specifically focus on emerging markets as an asset class, and even some that focus on specific emerging markets like China. As noted emerging markets investments offer the potential for much greater returns, but also much greater volatility.

Synonyms: Developing markets, Frontier markets, The next big economies, Emerging Asia
 
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