Read ANY Emerging Market Using This Simple Chart

Written by Lisa Meyer on May 25th, 2017

Get your hands on the emerging market cheat sheet every investor needs

There’s a great place that smart investors look for growth that most investors ignore…

Whilst the developed economies can offer stable returns, often they’re not big enough for the hungrier investors out there.

With developed economies generally growing around 2%, it can sometimes be quite enticing to look elsewhere for big growth.

And that’s where emerging markets come in.

The issue most investors face though is that they come with some serious risks too (Big returns usually do).

That’s why I wanted to show you the breakdown of the types of risks you’d face investing in emerging markets.

Better yet, I want to give you an emerging market cheat sheet that you can use to read ANY emerging market.

Check it out…

 

The Emerging Market ‘Cheat Sheet’

 

Read ANY Emerging Market Using This Simple Chart

(Source)

Decoding Your Cheat Sheet

 

As an example, Mexico and Chile have considerably different risks, according to the chart.

Aside from currency risk, which they both share, Chile is particularly prone to sensitivity in the world’s commodity markets.

That makes sense, because Chile is the world’s largest supplier of copper – and close to 50% of the country’s exports are copper-related, including refined copper (22.6%), copper ore (20.9%), raw copper (3.6%), and copper wire (0.5%).

On the other hand, Mexico is noted as having particular sensitivity to what happens in developed markets such as the United States.

This is because 81% of Mexican exports go to the U.S., while the next biggest buyer of Mexican goods is Canada at 3% of exports.

If the buying power of the U.S. and Canada is affected, it could have big consequences on what will be bought from Mexico.

Lisa Meyer Signature

Lisa Meyer
Editorial Contributor
The Money Lab