Emerging Markets Have Investors Hungry for More

640_9_2016_04_06_10_28_13Cash is literally flooding into emerging markets. In just the last two months, billions of dollars has been invested in this new marketing niche. With the MSCI stock market up by 5.5% this year in the European and US markets, now is an excellent time to be investing in emerging market stocks. Stock markets in Argentina, Brazil, Mexico, South Africa and Russia are up by over 10% so far this year and are expected to see further growth later down the financial road. Experts say the interest in these markets is a fire being fueled by small but important changes in the economy.

There has been a rising interest in overseas investments, coupled with investors seeking higher investments despites markets being riskier. With the strong rise of the dollar suddenly plummeting and the price hike in local commodity prices, it has become increasingly difficult to settle debts owed in dollars. Thus by investing in stocks with higher exchange rates, investors are seeking to find easier ways to turn over their hard-earned dollar. Richard Turnill, an investment strategist says that the current market is a sweet spot for investment in assets, although caution should be taken when investing in the global economy.

All That Glitters is Pretty Much Gold

charcoal-painted-gold-20150220_015724AE8BEE47CEBA4F8CB01C9C43ACDue to the market turmoil in the early months of 2016, and a loss of confidence in central banks with their new negative interest rates scheme, gold value has soared through the roof with an increase of 16.5% to $1,234 an ounce for the first quarter of the financial year, a first since 1986. While UK, Japan and Europe’s stocks plummeted, investors rushed to the safety that gold had to offer, creating a firestorm in which gold was the centre of the hurricane. It crushed every other asset this year, including bonds and oil, with staggering confidence to spare.

It is worth noting that even though even with the extraordinary price hike, the price of gold has yet to reach its pinnacle of glory of $1,923 set in September 2011. Predicatable, since the market has calmed down since February, gold’s dominant sway has eased, actually dropping down by 1%. Another point worthy of noting that even though gold is considered a safe bet or a fear trade, it is still subject to laws of availablilty, supply and demand. The Royal Bank of Canada and Colas of ConvergEx warns investors bitten by the gold bugs an outright decline in gold production could be coming for gold.