Vogel Consulting is a multi-family office that offers unique service platforms to cater to the specific needs of their clients. Advising on nearly $3 billion of assets, Vogel Consulting continues to take a keen interest in both the domestic and international financial markets. The company carefully examines emerging market equities before making strategic investment decisions and recommendations.
Emerging market investments include equities that are issued by developing economies primarily in U.S. dollar denominations. They offer new investment opportunities, growth potential, and diversification benefits to investors. The growth of investments in emerging countries could offset windfalls in the domestic country.
Members of BRIC countries (i.e., Brazil, Russia, India, and China) are believed to have had substantial economic growth over the last decade. South Korea is another emerging market with a rich economy and a growing number of consumers. On the other hand, countries in the Middle East, Southeast Asia, and Africa are still in the process of developing strong, stable economies.
While emerging markets offer many investment opportunities, investors should also take into consideration the risks associated with foreign investment, including foreign exchange issues, as well as political and economic risks. Returns from bonds and stocks are produced in the local currency and must be converted to domestic currency. Currency fluctuations can cause uncertainties and significantly reduce the value of one's investment. Meanwhile, political instability creates distrust and drives away investors. Poor monetary policies, lack of infrastructure, and a high inflation rate also do not help investors maximize their investments.
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