Tag Archives: Brazil

Emerging Markets In The New Year

The topic of emerging markets is always interesting, but it is one which is notoriously riddled with uncertainty. As developing economies have begun to emerge from the recession, this has quite often been at the mercy of emerging markets. China’s growth is expected to slow and economies with current account deficits such as Brazil and India are also vulnerable. There are, however, some specific markets which are thriving and which may present opportunities for investors. This article takes an overview of what happened with emerging economies in 2013 and what the future holds for the year ahead. Read more…

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The Bullish Retailers

Advancing Market Slump to Be Decade-Long According to Wall Street Banks

Advancing markets are not likely to recover quickly from the asset slump of last year that has left behind advanced-nation shares by the most since 1998, according to the biggest banks of Wall Street.

Goldman Sachs Group Inc. has been advising cuts as high as a third in developing nations investments, predicting “significant underperformance” for stocks, bonds, and currencies for the next decade. JPMorgan Chase & Co anticipates that local-currency bonds will post 10 percent of their average returns over a 10-year period, while Morgan Stanley expects the Brazilian real, Turkish lira, and Russian ruble will continue their decline after falling as much as 17 percent last year.

During the worst periods of the latest global financial crisis, the developing economies of Brazil, Russia, India, and China indicated their increasing power by delivering outsized returns, but as the U.S. Federal Reserve reduces its stimulus and allows interest rates to rise, Morgan Stanley expects some of the same developing nations to now prove laaggard. The MSCI Emerging Markets Index has dropped 3.2 percent this year, compared to the 1.3 percent decline of the developed-market index, and reached a four-month low yesterday as Chinese data indicated a weakness in manufacturing and services.

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morning-coffee

Living In A Material World?

Are we living in a material world? To a larger or lesser degree, the answer has to be ‘yes’ but it does seem that to what degree depends on where you live.

In a recent poll of 20 countries conducted by global market-research company Ipsos regarding their attitudes toward wealth and success, findings were that those in China were the most likely to equate success with material possessions, with 71 percent agreeing with the statement “I measure my success by the things I own.”

Perhaps it’s no coincidence that the next three countries were also large emerging markets, implying that people’s views may be shaped not only by culture, but by stage of national development: 58 percent of respondents in India agreed with the same statement, while 57 percent in Turkey and 48 percent in Brazil. In the more affluent US, the figure was 21 per cent.

People in China were also the most likely to say “I feel under a lot of pressure to be successful and make money,” with 68 percent agreeing. A separate global poll last year by U.K office-space company Regus, found that Chinese workers were also the most likely to report increasing stress levels over the past year.

Meanwhile, people in India were the most likely to be hopeful about their country as a whole over the next year, with 53 percent expressing optimism. Forty-six percent of people in China expressed optimism, well above the global average of 32 percent. The most pessimistic were those living in Spain, Italy and France, perhaps not surprisingly considering their recent financial woes.

So, does being well-off financially equate with success? That depends on how you measure your own personal success. What do you think?

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