In 2016, investors around the world reaped the benefits of their risky investments when shares in the benchmark MSCI emerging markets index surged 85%. But what does that mean? In the world of stocks, emerging markets refer to the group of about twenty-five countries or so that are defined by low growing per capita incomes and rapid industrialization.
Due to the often cheap currencies and robust growth occurring, investing in an emerging market has been a fruitful yet very untapped stock opportunity. However, we’re talking about more than simply emerging markets in developing countries. While investing in untapped markets involves a certain level of risk due to a lack of trends to follow, it also holds great potential for huge rewards.
The Benefits Tend to Outweigh the Risks
The same study that reported on the 85% surge in the emerging markets index also noted that the countries that fall into the category of “emerging” financially actually make up 40% of the world’s economic output. However, they currently only generate 12% of the global stock market value. This makes them a clever investment idea, as there is room for exponential growth. With digital transformation changing the way businesses operate around the globe, companies even in developing countries will move away from agricultural and raw-materials exports in favor of goods and manufacturing services. What this spells out for savvy investors is a chance to invest in companies from the ground up as they begin to change their systems and processes.
Investing in Other Risky Industries
Taking risks is a key component of being a successful investor, and experts are talking about another hot, yet risky market that you should be looking out for in 2019. That’s right, investment finance professionals believe that those who are most likely to succeed will have 25% exposure to commodities such as gold and silver. With the current political and economic landscape as it is in the United States, the US dollar is expected to continue to drop in value. While this isn’t good news for Americans, it’s great news for investors as it means that the industrial supply and demand equation results in a strong, positive influence on the price of precious metals, namely silver. Commodities as an investment class are generally untapped and silver is usually considered somewhat risky but as the value of the US dollar continues to drop, that’s changing. The best part about all of this is that investors can easily find silver to buy online while prices are low. According to Money Metals (https://www.moneymetals.com/), investing in IRA-approved silver holds the least amount of risk at the most optimal price.
Using Tech to Invest Wisely
Commodities and emerging markets will make up a large portion of the market index in the coming year, as analysts predict that taking risks is something that will likely pay off in 2019. Untapped markets, while risky and somewhat mysterious, are a great way to dip your feet into the world of investing. In the digital world, buying silver, purchasing international stock and trading other commodities is made easy, which means that using technology to invest wisely will help you soar to success while taking some of the risk out of the equation.