Emerging market

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Emerging Market

An economy in a country noted for growing liquidity, stability, infrastructure and other positive features, though not to the same extent as exists in the developed world. That is, emerging markets are economies that have increasingly important roles in the international stage and may one day become principal players, but they have not yet arrived at that level. Political factors may help or encumber emerging markets as they attempt to gain wealth and prominence. Major examples of emerging markets are Brazil, Russia, India, and China. Smaller economies, such as Bahrain, Egypt, Colombia, and others are also considered emerging markets. Emerging markets exist in less developed countries relative to the United States and Europe; these countries nonetheless have vibrant, active economies. See also: International development, BRIC.

Emerging market.

Countries in the process of building market-based economies are broadly referred to as emerging markets. However, there are major differences among the countries included in this category.

Some emerging-market countries, including Russia, have only recently relaxed restrictions on a free-market economy. Others, including Indonesia, have opened their markets more widely to overseas investors, and still others, including Mexico, are expanding industrial production.

Their combined stock market capitalization is less than 3% of the worldwide total.

References in periodicals archive ?
We believe the opportunity will increasingly be to capture the alpha of outperforming emerging market sectors, themes and securities rather than chasing the beta of the broad emerging markets universe, said Taimur Hyat, chief strategy officer, PGIM.
Newton has more than 20 years of experience investing in emerging markets and emerging market equities.
7 billion in 2017, with emerging markets experiencing particularly strong growth, according to Ovum's 'Smartphones in Emerging Markets: Shifting Landscape' report.
If emerging market economies are so much stronger than developed market economies right now, why have their equity markets underperformed?
Executives operating in emerging markets need to match their strategies to the market's institutional contexts, whether they are filling voids as entrepreneurial opportunities, moving from a developed market base into an emerging market, building a company based in an emerging market, or building a multinational from a base in an emerging market.
Summary: Hedge funds investing in Emerging Markets far outpaced average performance in the broad hedge fund universe in 2Q 09, according to data released today by Hedge Fund Research (HFR), the leading source for hedge fund industry data.
Latin America: after posting the smallest loss in 2008 among all the emerging markets regions, the HFRI Emerging Markets: Latin America Index gained 21.
The point is perhaps best illustrated by a reply I received from a seasoned Wall Street trader when I recently asked him where he thought that the next emerging market debt crisis would take place.
Foreign exchange (FX) rate issues have become more important in recent years, especially in emerging markets, but businesses appear to look through exchange rate volatility to focus on key market opportunities.
Although emerging markets are considered attractive by investors because of the potential for high return, there is a great deal of risk involved.
Interest rates are of course not the only determinant of the demand for emerging market securities.

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