What a hot ‘n cold summer for the capital markets!
Have you noticed that the frontier markets have held up quite well relative to the big sell off of the past few days? This doesn’t really come as much of a surprise because global investors have pretty much been ignoring these markets during the BRICs euphoria so there really aren’t any foreign panic sellers around to cause too much damage.
In the meantime, the local investors across the ‘frontier’ are very quiet; probably watching in shock and awe how the developed markets seem to be falling apart.
Could it be possible that we are getting closer to the point where global investors will at last accept the frontier markets as they are and acknowledge their value?
Will they finally turn into long term investors and get over the fact that today there is less liquidity in these markets?
Will they finally loosen up with regards to political risk in the realization that most politicians are the same, no matter where you go?
I guess we will soon find out. It is inevitable and it needs a catalyst and what is happening today may well be the one we need to make it happen…
It is old wisdom to “go where the money is”…. there is a good amount of it in the frontier markets, large amounts of real unleveraged money! I guess everyone will eventually understand this undeniable fact.
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