Daily Investment Tips

Investing in Emerging Markets is easier today than at any other time. In the last few years Global Emerging funds have produced stellar returns for investor. The performance has been good because the Emerging markets have enjoyed robust economic growth. Countries such as China, Brazil, India, Russia & even the forgotten African countries have been on growth mode for the last decade.

Investing in Emerging Market Funds in 2011

Am I late by investing in Emerging Market fund in 2011? The answer is NO. China just reported that their 2010 GDP Growth was 10%. It is also estimated that by 2050 the BRIC economies of Brazil, Russia, India and China will all be among the world’s half-dozen biggest, along with the US and Japan. China is expected to have overtaken the US to become the most powerful economy on earth.

What this means is, investors risking money in Emerging Market funds may continue to enjoy massive profits.

written by Constantine Njeru \\ tags: African Countries, Amp, Brazil, Earth, Economy, Emerging Market Funds, Gdp, Gdp Growth, Growth Mode, India, Investing In Emerging Markets, Investor, Investors, Japan China, Last Decade, Massive Profits, Money Market, Robust Economic Growth, Russia, What This Means

Yahoo finance have an interesting interview with Michael Pento, senior market strategist at Delta Global Advisors. The man has come up with some neat mathematical calculations on why Americas’ debt is a disaster waiting to happen.

I have always thought uncle Sam is too big to fail but after reading Michael Pento interview the US could be another Greece tragedy or may be, another Argentina.

Using Treasury Department’s recent U.S debt estimates that showed total U.S. debt will top $13.6 trillion this year and rise to 102% of GDP by 2015. Moreover, the publicly traded debt (debt excluding intra-governmental obligations) will rise to $14 trillion by 2015, up from “just” $7.5 trillion in 2009.

Mr Pento then calculates, At $14 trillion, the interest payments on the public debt will total about $1 trillion in 2015, he continues; even assuming solid growth and low inflation, that would equal about 30% of total government revenue. “What do you think that does to our bond market?,” Pento wonders. “It leads to a dollar crisis and a bond market crisis. That’s why gold refuses to go down. ”

If Pento is right then expect the yield on US treasuries to rise. Investors in bonds could see the value of the bonds fall.

Read the rest at the Source Yahoo Finance

written by Constantine Njeru \\ tags: Bond Market, Bonds, Debt Crisis, Dollar Crisis, Gdp, Global Advisors, Government Revenue, Governmental Obligations, Inflation, Interest Payments, Market Crisis, Market Strategist, Mathematical Calculations, Michael Pento, Public Debt, Treasuries, Treasury Department, Trillion, Uncle Sam, Yahoo Finance