Looking for a different investment option? Try emerging markets. An emerging market is defined as a country with low to middle per capita income. Since these countries are trying to bring about a developed market, they’ll be building liquid equity. Think of an emerging market as a stock market getting ready to grow – since the economy of the country is getting ready to grow.
How many emerging markets are there? There exists more than 130 but only 45 with stock markets that allow for investments.
What’s The Risk?
All developing countries saw an increase in returns the last two years, with Turkey leading the pack at 28% last year and 56% in 2012.
Emerging markets are still considered a high-risk investment and that risk most often translates to a higher return – and the International Monetary Fund predicts emerging market countries to have two to three times the development of an already developed country – for several years.
If emerging market investing still makes you nervous, consider that over 30% of global revenues in the next decade are expected to come from these under-developed countries with emerging stock markets.
Here’s an infographic developed by millionaire investor, Timothy Sykes, that offers some great information on emerging markets.