Posted on 02 July 2010 by admin
Hard Assets Investor submits:
By Lara Crigger
Just as emerging markets dominated headlines in 2009, resource-rich frontier markets are quickly becoming "the" hot investment for 2010. Investors have flocked to these small, notoriously illiquid economies, seeking to get into the next China or Brazil at the ground floor. But with so much hype and misinformation surrounding the space, how can investors avoid getting burned?
Posted on 02 July 2010 by admin
ETF Database submits:
Equity markets experienced another volatile week, but managed to eke out a gain despite a rough Friday that saw major indexes shed more than 1%. Despite a gain on the week, the S&P 500 shed close to 9.5% on the month, one of the worst performances for the index in over a year. After plunging for several weeks, oil managed to shoot higher by about 6%, which helped to erase a chunk of the losses that the commodity has suffered in May.
Two key events helped to set the tone for the markets; not surprisingly, both were directly related to the ongoing fiscal crisis in Europe. On Thursday, markets were boosted by comments from China that squashed rumors of the nation looking to get rid of some of its euro zone debt holdings. However, markets on Friday resumed their tumble as ratings agency Fitch downgraded Spain from AAA to AA+ on fears that a recovery would be stunted by a sharp decrease in government spending.
Posted on 02 July 2010 by admin
Paul Kedrosky submits:
A few weeks ago I mused here about the inflection point seen in African economic growth back in 2003. That sparked an interesting conversation, so here is more of same from DeutscheBank. This shows that North Africa will trail only Asia in terms of growth and resilience in recent years.
Posted on 02 July 2010 by admin
Research Recap submits:
McKinsey believes Africa’s recent economic surge is no flash in the pan and that on balance the continent’s economic prospects are strong.
Selected Excerpts from What’s driving Africa’s growth
Posted on 02 July 2010 by admin
Michael Johnston submits:
With the fallout from last week’s conflict between the Israeli navy and a flotilla seeking to deliver aid to the Gaza Strip still raining down on the Middle East, the next escalation of tensions may not be far off. An Irish ship carrying pro-Palestinian activists and supplies was closing in on Gaza Friday afternoon, and Prime Minister Benjamin Netanyahu had vowed to intercept the vessel before it reached its destination.
The Rachel Corrie, named after an American student killed in the Gaza Strip by and Israel Defense Forces bulldozer, was reportedly carrying about 20 passengers and crew, most of them Irish citizens. Medical supplies, toys, and cement were also on board, scheduled to be delivered to the blockaded area now controlled by Hamas. Israel had offered to allow the ship to dock in the port of Ashdod, and said that it would deliver the aid to Gaza after inspection. Israeli’s foreign ministry said in a statement today:
Posted on 02 July 2010 by admin
Thomas Brigandi submits:
With less than a week left to the start of the World Cup, South Africa is on the minds of billions of soccer fans around the world. In addition to hosting one of the largest sporting events in the history of the world, the most southern African country also might be an excellent investment opportunity.
The World Cup, a month long soccer event, means a lot to the people of South Africa, which is the first African nation to host the World Cup. In fact, the President of South Africa, Jacob Zuma described 2010 as “The most important year in our country since 1994” mainly as a result of hosting the World Cup and the connotations that come along with it.
Posted on 02 July 2010 by admin
Chip Krakoff submits:
When two leading strategy consulting firms, each of which prides itself on rigorously independent analytical thinking, release reports in the same week on roughly the same topic, there are only two possible conclusions: either they have been afflicted by the same kind of groupthink that led those famously independent Wall Street firms over the precipice of subprime mortgages, or they are onto a real and important phenomenon. I suspect a bit of both.
On June 2, Boston Consulting Group (BCG) released a report “The African Challengers: Global Competitors Emerge from the Overlooked Continent.” That same week, the McKinsey Quarterly, the journal of McKinsey & Company consultants, released its summer issue with a cover story and several additional articles devoted to “Africa’s Growth Story.” Having spent much of my career in Africa, and having written fairly extensively in this blog and elsewhere about both the promise and the frustrations of the continent, I am gratified to see an alternative take on Africa to what many call the “CNN Effect,” which focuses on poverty, starvation, and armed conflict to the exclusion of almost everything else. Still, it’s not clear that these reports fully meet the test of truth, originality, and relevance.
Posted on 02 July 2010 by admin
Michael Johnston submits:
When the soccer World Cup kicks off in Johannesburg this weekend, it will mark the beginning of one of the most anticipated sporting events of all time. The month-long tournament will showcase the world’s finest athletes and most passionate fans on a global stage. But also on display over the next four weeks will be the country of South Africa, home to one of the largest non-BRIC emerging economies and an increasingly popular investment destination.
In most of the world, South Africa is best known as the country that ended apartheid in the mid-1990s, electing former political prisoner Nelson Mandela as president. But South Africa is also home to one of the world’s most unique economies, with some sectors showing characteristics typically associated with developed markets and others clearly reflecting emerging status.
Posted on 02 July 2010 by admin
Clemens Kownatzki submits:
This year’s FIFA World Cup 2010 hosted by South Africa has prompted numerous sites to look into possible investment opportunities in South Africa and other countries on the African continent. We are not trying to advise on the merits of investing in South Africa but would rather like to point out a few possible avenues one could consider.
As you might have guessed, there are certain ETFs providing some exposure to South Africa and its currency the South African Rand.
Posted on 02 July 2010 by admin
Ketan Desai submits:
The results of a survey conducted by the US (with help from Soviet data) was released this morning. Apparently, Afghanistan has gold. Not black gold, or white gold, but the real thing, along with copper, cobalt, lithium, iron, and niobium worth between $1 trillion and $3 trillion. Compare this with Afghanistan’s GDP which presently is around $16 billion.
Needless to say, this has the potential to enrich the people of Afghanistan if developed properly. And that is where the problems begin. Many countries and parties will want to get their hands on these resources.
