Читать книгу The Emerging Markets Handbook - Pran Tiku - Страница 27

In the first stage of development, investors discover the emerging market opportunity – be it a specific country, theme or sector. This stage is liquidity-driven and money flows are strong. In many cases, there is much promise and hype that in the end remains unfulfilled.

For example, from 2009 to 2010 many companies moved their manufacturing away from China to Vietnam based on its competitive wages. But Vietnam’s weak institutions, lack of skilled workers and crumbling infrastructure meant most shuffled their manufacturing back to China in the end.

There is potential for big profits investing in early-stage markets, but the timing for entry and exit must be impeccable. We will not be studying such early-phase markets in this book.