HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

Emerging markets: an intriguing niche


Emerging markets are the countries that possess some characteristics of a fully developed market but do not have enough to be considered developed. In this group are countries that were once thought to be developed but changes to the market have the economy riskier or less stable, and of course, some of these markets will one day likely reach fully developed market status. ‘Frontier market’ is a related term that denotes a market that is smaller or riskier than an emerging one.

Countries with Developing Economies


The two largest emerging markets today are China and India, which find themselves in a group called BRIC, an acronym for the four largest developing economies, Brazil, Russia, India and China. As a duo, China and India serve as a base to some 40 percent of the world’s population and labour force, and together their output at over $32.5 trillion is much greater than that of the United States or the European Union.

Other large groups of developing markets that include the four BRIC countifies are BRICET, which is BRIC with the addition of Eastern Europe and Turkey, BRICM, which is BRIC plus Mexico, BRICS, with the addition of South Africa.

Other emerging economies lumped together are MINT, which is Mexico, Indonesia, Nigeria and Turkey; CIVETS, which groups together Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa; and Next Eleven, which is these emerging markets lumped together: Bangladesh, the Philippines, Egypt, Indonesia, Nigeria, South Korea, Pakistan, Turkey, Mexico, Iran, and Vietnam.

Perhaps a more encompassing look at these markets would be the 10 Big Emerging Markets, known as BEM. In alphabetical order they are: Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea and Turkey. Of course, everyone brokerage has their own breakdown and list of emerging markets.

One well-known US investment firm includes all these as emerging markets in their Emerging Market Index: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Qatar, Peru, Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand, Turkey, and United Arab Emirates.

These compare to the established advanced economies of the United States, Japan and western Europe.

Defining Emerging Markets


Over the years, there have been various definitions of an emerging economy, with scholars studying them. In the 1970s, there was the idea that ‘less developed countries’ could provide more profit potential than developed economies, with greater risk, of course. But soon that term led to emerging market, though economies do not necessarily ever ‘emerge’.

So, perhaps the best way to look at these markets is as a market economy that is developing. No one knows for sure which parameters t use in classifying developing markets, just like no one knows how developed a particular economy will reach or when, but for now, it is progressing towards advancement. And emerging economies are important to the global economy, driving growth.

There seem to be several characteristics that developing economies share. Low per-capita income, rapid growth, volatility, and finally, a high ROI. When looking at economic growth, we can see in 2017, the most developed countries, such as the United Kingdom, the United States, Germany and Japan, was less than 3 percent. At the same time, growth in the economies of Egypt, Poland, and Morocco was greater than 4 percent. For emerging markets China, Turkey and India, their economies grew in the neighbourhood of 7 percent.

Investing in emerging economies is not right or wrong. Some investors find these characteristics attractive and choose to invest in emerging markets. Of course, other investors choose more established economies to invest in, preferring economies that are already developed, with less chance for volatility.

#source


RELATED

How to avoid analysts' mistakes?

We often hear about an undervalued asset, an unfair exchange rate, or an overvalued dividend forecast. In my opinion, such "expert" statements...

Market Hiccup or Potential Loss

This article will focus primarily on the price actions of retracement and reversal...

3 Tips on How to Take Advantage of Volatile Markets

What’s your first reaction when market prices suddenly go tumbling down or climb up? In any case, as a trader, you’ve probably experienced market volatility in a number of situations...

Secrets of trading in the Asian session

Practically every trader knows that the particular dynamics of the pricing of financial instruments depends not only on the selected asset, but also...

Does the Stock Market Reflect the Real Economy?

The stock market has often been regarded as an indicator or predictor of the real economy. Its suggested that a large downward movement in the stock market (20% and below) is telling of a future recession...

Steps on how to trade Cryptocurrency in 2020

Every country has its own paper or fiat currency which is usually printed and controlled by the national or central bank. This is why forex transactions are important...

A Guide to Ethereum Trading

Ethereum is one of the most promising technology in today's fast-paced world. Since its creation in 2015, its growth seems not to slow down anytime soon...

Oscillating Indicators

As their name suggests, oscillating indicators are indicators that move back and forth as prices rise and fall. Oscillating indicators can help you decide how strong...

AvaTrade: Commodities trading explained

Commodities are basic items of consumption of the worldwide economy. Do you have an opinion on the price movements of Gold, Silver or Coffee? Act on it! Commodities...

The Mystery of Satoshi Nakamoto. Who is the mysterious creator of bitcoin?

If you were even a little interested in cryptocurrencies, you probably heard the name of Satoshi Nakamoto, probably the most mysterious person of the 21st century...

Investment Time Horizon: Definition And Its Role In Investing

Beginning investors who come to the stock market are inevitably confronted with terminology that is new to them. An accurate understanding of this vocabulary makes it possible...

What is paper trading?

The term 'paper trading' comes from the stock exchange market, where investors who wanted to practice would write their investments on paper...

How to Get into Online Metal Trading?

The most popular precious metals in metals trading are gold and silver. The latter is strongly linked to the main currencies and the world economy as a whole. Precious metals...

What is Leverage in Forex: A Beginner’s guide

Leverage can be an essential feature to use, especially when trading foreign currencies via Contract of Difference (“CFD”). Leverage allows you to open larger positions with relatively little capital...

Investing in Bitcoin in 2020: Is It a Good Idea?

The one of a kind financial asset has been compared to gold and said to have the potential to unseat the dollar as the global reserve currency one day...

What Markets Hold For 2023 And What Assets To Invest In?

As some people like to say, we are always faced with great opportunities carefully disguised as insurmountable problems. And most of us kept repeating this to ourselves many times in 2022...

Can ChatGPT trade better than humans?

AI machine learning models are a hot topic right now, and ChatGPT is the name on everyone’s lips. Some believe AI will inevitably lead to millions of job losses...

Exploring The Limitations Of Fundamental Analysis: A Comprehensive Perspective

Fundamental analysis is a method used to evaluate securities by examining the underlying factors that influence their intrinsic value. It involves analyzing both qualitative...

Six factors that determine currency exchange rates

Understanding the forces that influence currency exchange rates is key for successful Forex trading. In this type of market...

Litecoin records 4% gains

On February 26, only Litecoin and Ethereum amongst the 10 most valuable cryptocurrencies in the global market managed to record daily gains...

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%
Riverquode information and reviews
Riverquode
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.