Emerging Markets

Emerging markets can be good investment opportunities next year, but ultimately, that will be dependent on U.S. politics.

Fund managers cut their exposure to both commodities and emerging market equities to record lows this month, as oil and metals seem unable to shrug off price weakness and China recession fears mount, new research shows.

Investors are pulling out of emerging markets, and plunging commodities prices are hitting growth in much of the developing world. But largely unnoticed by many U.S. investors, a group of medium-to-large cities in those markets is emerging as possible future powerhouses. They are places like Luanda, a fast-growing Angolan metropolis of 10 million that many Americans …

The rising price of bread was one reason Hosni Mubarak lost power in Egypt. Food inflation is one reason his replacement, Mohammed Morsi, also lost the job. “Egypt is the largest importer of wheat in the world, but they have to buy it on the spot market,” said Philip Blumberg of Blumberg Capital. That may change. …

“Sell deficits, buy surpluses” was a winning strategy for emerging markets in 2013, but the new mantra for investing in developing economies may be “sell commodities, buy manufacturers”, says Citi. “It is unlikely that ‘deficits vs surpluses’ will always govern investor behavior towards emerging markets, especially now that this theme is becoming a little less …

As Brazil hurries to complete preparations ahead of the start of the soccer World Cup on June 12, many Brazilians may be expecting the event to boost the nation’s flagging economy – but economists are unconvinced. Capital Economics this week warned that the event will do little to help Brazil’s economy because it will not address the crucial …

Concerns that the crisis in Crimea could hit Russia’s economic prospects were raised this week by both the World Bank and the country’s own economy minister. But it seems that the country’s finances were already on shaky ground thanks to frail domestic demand and lack of structural reforms. The World Bank has forecast the Russian …

The Dow logged its first January drop in four years. Should investors prepare for big swings ahead?

One thing’s for sure: I find it hard to believe that the overnight weakness is due to a drop in euro zone prices. The yen is stronger, and the Turkish lira is down again as investors flock to safe haven U.S. debt. We continue to grapple with emerging market fallout, due to lower liquidity stemming from the Federal Reserve’s tapering policy. …

It’s hard to see how the economic turmoil in Turkey and Argentina could damage the growth prospects of the United States in any serious way, former Federal Reserve Vice Chairman Alan Blinder told NBR. “The Fed looks at that and thinks, ‘It’s too bad for these countries and it would be nice if it was …

Stocks fall as the Federal Reserve decides to stick with its strategy to wind down its stimulus despite the recent emerging market turmoil. What does that mean for the economy and your money?

Markets are waging war against central bankers. After initially rising, U.S. stock futures sold off sharply as selling returned to emerging markets, reversing gains in currencies that were boosted by the Turkish central bank’s sharp rate hike. “I think that on the flip side of the rate hikes, where people thought this would stabilize things, the extent …

The central bank of Turkey held an emergency meeting as it tries to support its currency.

With the emerging markets in focus, which countries in crisis could have an impact on your money?

Last week, worries about a slowdown in China’s economy and a credit crunch in the country spread to Latin America and other emerging countries, causing a big selloff across the globe. In the U.S. the biggest decline came in industrials and materials, sectors that have a lot of exposure to emerging markets. So, is the …