Emerging Market Investing – 3 Hot Investment Sectors The Experts Are Raving About – Part 2
In spite of positive trends, emerging market investing in infrastructure has been under a cloud because of recent anemic global growth. There has been some concern on the buyers’ side that long-term project funding would dry up, because governments tend to concentrate more on social security and pensions. These fears go over the top in general. There is still robust infrastructure spending across emerging markets, although private enterprise is still largely responsible for covering liabilities and costs going forward.
Having said that, there is still substantial risk with infrastructure emerging market investing. Political risks are there at the top of the list. Regulations and bureaucracy of governments can limit profits and considerably slow down development. Moreover, priorities could easily be changed and state funding could be reduced. For example, China is now putting emphasis on water and energy projects, and moving away from its previous focus of railways. The second hazard is that these developments, which are very high-profile, require a lot of capital, but will not generate any profit for a very long time. Some stocks offer attractive dividends, but investing in this area will still require a long wait for any kind of return.
For more information on emerging markets, go to:
The information supplied in this article is not to be considered as medical advice and is for educational purposes only.
|
 Stock Market Trading 6 Oct 2010 |
