Emerging markets will account for the biggest change in the coming future. Developed nations will remain motionless as less-developed nations continue to grow. In 2013, global growth will be a difficult climb but is projected to reach 3.5%; with emerging markets providing much of that boost. When considering the investment potential of emerging market classes, it is clear that they are open for business and more and more investors are seeking access to emerging markets, in hopes of increasing the value of their investment holdings. If growth is the objective, it may be captured better in the early stages by investing in the currency or government bond market, first hard currency then local, rather than equities.
Investments are being made within broad emerging markets as well as specific and tactical with individual countries. The pace of China’s economic growth will influence numerous trends over coming years. This pace also affects the growth rate of many other emerging markets that do business with China. Analysts believe this growth, should help emerging market stocks outperform their U.S. counterparts and provide alternatives for confused investors, who have grown apprehensive of western markets.