Oxstones Investment Club™I just read a great interview by Jonathan Barnes of the CFA Institute Magazine, in which he interviews economist Dambisa Moyo. Check out the full interview at http://www.cfapubs.org/doi/pdf/10.2469/cfm.v24.n4.12
Here are some of the highlights:
1. There is a lot of opportunity to invest and generate superior, uncorrelated returns in a broader global portfolio. Particularly within the public markets of frontier countries.
2. Many frontier markets—just looking at the macroeconomic theme—have a solid capital base in terms of debt and deficits, strong labor dynamics (in terms of a young population), and a really compelling story around productivity.
3. Confusion remains between risk (measurable) and uncertainty (unmeasurable).
4. Chinese investment is only a piece of the story…Domestic demand is increasing within the frontier markets.
5. Not just about the commodity trade…think banks and construction!
6. In terms of equities we’re talking about more than US$1 trillion in market cap, with 8,000 stocks that trade in that frontier market space.
7. The fixed-income side is another place of real opportunity. Take Africa, for example. Today we’ve got almost 20
countries that have credit ratings.
Tags: Africa, Asia, big picture, China, commodities, emerging markets, frontier banks, frontier construction companies, frontier markets, geopolitics, great ideas, stocks