Just imagine yourself as a stock investor over a century ago. Would you have placed and bet your money on the growth opportunity of the US? Knowing what you know now, you would not hesitate to answer yes.
Unfortunately for our current generation of Americans, those days are way gone. The opportunity for that type of rapid infrastructure development and high-flying GDP growth is way in the past.
While India and China definitely will not be running out of steam soon and continue to grow strongly, those countries are already emerging countries and markets. In order to capture even more exciting, and rewarding (for your portfolio) early years of initial growth, you need to research and find the countries and economies that will become the next emerging market.
Investor buzz is rapidly growing around small economies such as Bulgaria, Vietnam, and Indonesia. Known as Frontier Markets, these countries are just now starting their development stages and frontier markets index are being created. They currently hold less than 2% of the money invested in stock markets worldwide.
But that is changing right now, and the change is accelerating. Various investment banks anticipate that Vietnam and Indonesia will be two of the 15 largest economies in several years. And looking at how the past emerging markets and ETFs performed (if you bought in early enough) the prospects are very lucrative and rewarding. According to a recent article in Newsweek article, the current “major” emerging markets of India, China, and Brazil, held fewer than 1% of the worldwide stock market money back in 1987. Today, their share has increased to over 12%.
Exchange Traded Fund managers are tapping into these countries by launching new ETF for frontier markets. Over the last decade, countries in the bottom 4% of the world stock market capitalization universe returned 18.1% annualized over the past 10 years, versus only 5.6% average return for developed markets.
Now is the time. Do not miss your chance this time to get in early.
Right now, frontier markets are offering you untapped potential to informed investors.