The Fate of Foreign Markets is Called into Question

The U.S. Stock market may have suffered in the new millennium but the same can’t be said of many emerging markets which first began to establish themselves over the past 10 years.  The quickly expanding markets and swift investment had many people wondering if developing markets, like those in Brazil, Ukraine Russia, China and India could keep their pace.

The PFTS Stock Exchange in the Ukraine saw staggering improvements of more than 1,350 percent since 2000 while Peru saw gains of 660 percent.

India saw smaller but still tremendous improvement with their index shooting up 240 percent.

China has been less quietly expanding, establishing itself as a global leader and owning the majority of US debt and warranting, along with other developing economies, comparisons to post war Japan.

The changes being seen are due in part to technological advancements, which unlike these economies can be guaranteed to continue to grow. Investment can be too rampant within developing nations causing unbalanced budgets and potential busts. This pattern of immense growth followed but crushing busts are highly familiar, existing since the 1800’s and most recently in 1997 and ’98 when Russian and Asian markets plummeted, in Russia’s case up to 80 percent.

Dubai’s recent bubble bursting with their inability to repay debts sent a shiver up the spine of many investors in developing nation but the bailout from Abu Dhabi quieted concerns. Such bailouts; however are not always readily available, particularly with many historically strong, developed nations still reeling from the 2008 crash.

About EQUITIES:

Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on the Internet at www.equitiesmagazine.com, as well as select content at www.nasdaq.com.  For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.

Sign up for a free one-year subscription to EQUITIES Magazine.