« Boeing and Airbus have received orders for more than $82 billion - US market: UST profitableness has decreased »

The markets of developing countries continue to involve investors

14 November 2007
Written by: webmaster Posted under Globalization

While the largest companies of the USA continue to inform on losses from credit crisis, the markets of developing countries, which practically have not suffered from negative consequences of August crash, become more and more attractive to investors.
Moreover, experts mark that the proceeding cycle of downturn by US Federal Reserve System of a discount rate finally leads to that such developing countries as India and Russia, show all the best rates of economic growth.
Two years ago the assumption that the markets of developing countries not so much depend on the world’s largest economy, caused only laughter. The statement that any problems in the USA finally will lead to the extremely negative consequences in all countries used much greater popularity. However, recently actives of developing countries show good enough parameters even during decrease in other markets that should please investors.
So, the free index of developing countries MSCI has grown more than on 30 %(in comparison with 2006)  and on 14% since August, 2007. For comparison, index MSCI of the developed countries has decreased after August crisis on 5 %. Morgan Stanely experts mark that it becomes very favorable to invest in the markets of developing countries and 2 years ago nobody could even assume, that the situation will develop in such way.
However, experts mark, it is impossible to approve, that recession of economy of the USA will not affect in any way the markets of developing countries, - the states with mainly external financing and astable balance of the current account (as, for example, Turkey) can show not so good parameters.




Related posts:

Leave a reply

You must be logged in to post a comment.