A recent article in Forbes.com makes a good case for investing in emerging markets as a smart way to help diversify an investment portfolio.
“Emerging markets” are essentially poor countries that are getting less poor. Sometimes also referred to as developing, countries, they are, according to Forbes, “fast becoming the driver of global growth.”
In fact, says Forbes, recent upward trends in U.S. markets are directly tied to overseas investments in countries that need the money. Further, according to Forbes, “Around 70% of world growth over the next few years will come from emerging markets, with China and India accounting for 40% of that growth.”
So, what could make emerging markets great investments?
Stability, ironically – When U.S. markets went down in a blaze of glory, Brazil, India and China’s economies contributed to the re-growth and eventual sustainability in the rebuilding phase.
Lower debt ratio – The U.S.’s debt balance is far higher than that of countries like China and Russia.
Younger Work force – While the U.S. struggles with Baby Boomers aging out of the work force, India’s much younger work force is growing.
Scroll through the article (here) to see why a strong case can be made for allocating some of your investment dollars into emerging economies.
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