International investors over the last couple of years had increasingly decided that Turkey was no longer a country to consider when looking for new opportunities. There were concerns over a slowing economy, and increasing dangerous neighborhood as well as the movement towards a more authoritarian type of government. Much of these anxieties have been exaggerated and as it turns out ill founded. Although Turkey has gone through a somewhat difficult period in some respects, the transition has recently been moving in a […]
Global Investing Blog
Ethiopia: A Rising Economic Power In Africa Under Constraint
In a continent where missed opportunities for growth are commonplace, Ethiopia has been somewhat of an exception. The economy of country expanded in excess of 10% from 2004 to 2009. It was the fastest growing nation in Africa during 2007 and 2008, that was not dependent on oil. By 2012 the growth rate had moderated to 7% and has remained there ever since, but it is still an impressive record. As Africa’s second most populous nation after Nigeria and the fastest growing […]
The Consequences Of The Coming Crash In The Chinese Stock Market
Investors often worry about the high valuations of the stock market in the United States. Share values are far higher in China, well beyond what can be accepted as normal growth. The excessive exuberance in the Chinese markets will have dire consequences in both the short and long term. Signs of overvaluation are everywhere, with stocks up nearly 50% in 2015. The market is being increasingly driven by speculators, rather than on economic data. The amount of additional money and new investors […]
A Global Addiction To Debt With The West Leading The Pack
Global debt is now at 286% of GDP (Gross Domestic Product). Although debt like investment serves a purpose in the development of an economy, beyond a certain level it brings diminishing returns. The Bank for International Settlements an organization that has within its membership the world’s central banks, has calculated the threshold where debt becomes destructive. It is 85% of GDP in household debt and 90% for non-financial corporate debt. Most wealthy nations have gone beyond these benchmarks. This portends a troubling […]
The Boom In Global Trade For Northeastern Asia Finally Ends
For decades analysts and investors gauged the health of the world economy based on the value and amount of exports that originated from Northeast Asia. The region has been one of the most dynamic in the arena of trade for almost 2 generations. China by far the most important economy in the region, has seen a diminution of 6.4% in exports over the last year. South Korea is reporting a 8.1% decline over last year and Taiwan is expecting exports to shrink […]
The Transatlantic Trade And Investment Partnership
The Transatlantic Trade and Investment Partnership is a proposed free trade agreement that is being negotiated between the European Union and the United States. This commercial pact has become quite controversial between those groups who fear the loss of more national sovereignty and other elements of society, who favor widening opportunities for trade and investment on both sides of the Atlantic. As the individual economies of Europe and the United States continue to struggle to return to more normal growth, the public […]
Saudi Arabia Finally Opens Up Stock Market To Foreign Investment
Investors will finally have the opportunity to enter the largest stock exchange in the Middle East. At $590 billion USD (United States Dollar), Saudi Arabia will partially open up the market on June 15th. The new regulations will come into force on June 1st in time before the inaugural change that takes place two weeks later. Investment will be limited to qualified foreigners that have at least $5 billion USD in assets under management. This will give a distinct advantage to banks, […]
The Ongoing Controversy Over The Trans-Pacific Partnership
The Trans Pacific Partnership known as TPP involves 12 nations and will constitute 35% of global trade, when and if it is fully implemented. The negotiations have been ongoing for almost 10 years, among the nations that straddle the Pacific Rim. If one were to add the GDP (Gross Domestic Product) of these nations, it would add up to $28 trillion USD (United States Dollar). Together this represents nearly 40% of global GDP. The new partnership will bring massive new opportunities for […]
Investing In France Becomes More Challenging With Florange Act
At the beginning of the 21st century, France was still considered a leader in the world of business. As the 2nd largest economy in Europe, the country was able to greatly influence the biggest trade bloc in the world. Investing in France for the long term, seemed to make sense as it was recognized that there were a number of French companies considered world class. The country’s stock market at that time, (CAC-40) contained 5% of the global total of shares traded. […]
Corporate Debt In The United States Is Growing Rapidly
The issuance of corporate debt in the United States is expanding at an alarming rate, if investors consider the mediocre economic growth that has been the rule since the end of the Great Recession in June 2009. In 2015 it is growing faster than at any other time. This is on top of three record breaking years of additional debt. Much of this financial activity is being funded by the excessively low rates of interest, that were put in place by the […]