Emerging Markets Remain a Focal Point for Investors, Talent
After several years of outperforming developed markets, emerging markets still offer investors some compelling reasons to invest. The MSCI Emerging Markets Index rose nearly 50% in the first 10 months of 2007. Meanwhile, the IMF has forecasted economic growth rates of 8% or higher, versus 2%-3% for the Organization for Economic Co-operation and Development (OECD) nations. Spreads on emerging market debt have also narrowed to historic levels.
The long-term economic case for emerging markets is as strong as it has ever been, according to Forbes. In a recent report, Forbes recounts some compelling statistics. Specifically, these countries command 77% of the earth’s land mass and are resource-rich. They also produce most of the global supply of oil, copper, platinum, gold and silver - a key supporting factor for many emerging countries. Emerging markets equity valuations have also come a long way. According to Merrill Lynch, the market capitalization of emerging markets countries is now $3.5 trillion vs. only $500 billion five years ago.
But is the strength in emerging markets sustainable? According to Forbes, thanks to improvements in balance sheets in the region over the past several years, these countries are poised to weather higher interest rates, lower global growth or other economic upheaval.
Executive search firm, A.E. Feldman, reports that emerging markets remain important in the money management business. Developing regions, specifically Latin America, are a focal point for investors, and demand for financial services professionals with emerging markets expertise remains high. Firms want people who can understand companies in emerging markets on a ground level basis. Language proficiency in Spanish and Portuguese, in particular, are highly sought after skills.
