Blog: Developing markets remain tempting prize
Katy Askew | 20 May 2010
Investor attention continues to hone in on the volatile performance of stock in the US and Europe, with the FTSE, Wall Street, the French Cac 40 and Germany's Dax all declining by around 3% yesterday (19 May).
And, while the food and retail sectors are often viewed as defensive stock, the industry is not immune to swings of investor sentiment (as witnessed by the steep drop of Home Retail Group – one of the FTSE's biggest fallers).
According to investment vehicle Silk Invest, the answer is simple: investors should switch their attention to “frontier markets” in Africa, the Middle East and Asia.
“Those amongst us who can pull their heads out of the sand will encounter fundamentals in the frontier world that are very hard to resist, especially now in times of stark contrast between the economic realities at both ends of the development spectrum,” Silk Invest MD Baldwin Berges insisted in his weekly investment update yesterday.
According to Silk Invest, the fundamentals for growth offered by these emerging markets – particularly in areas such as the food industry – should outweigh any potential risks associated with investing there.
Expansion in these high-growth markets, with rapid population growth and an emerging middle class, is certainly a tempting prize – not just for the investment community but also for global corporations in the food and retail sectors.
Although recent events in Thailand illustrate that developing markets do present some particular risks, the growth potential offered is too great to be ignored.
Today (23 December) is just-food's last day before closing for Christmas. We'll return, raring to go on Tuesday 3 January - but of course there's been plenty of top-notch content that has gone live in...
The plethora of food manufacturing associations in the UK has been argued by some to be an impediment to the industry coming to a coherent position on the aftermath of Brexit and on what the sector sh...
- 2017: three major drivers of M&A strategy
- The food market in 2017 - consumer trends and M&A
- just-food 2017 Survey - your thoughts on growth
- Food market in 2017: need-to-know US trends
- 2017 - what will shape the UK food sector?
- Premier Foods issues profit warning
- UK's Bakkavor plays down IPO "speculation"
- Kellogg to slash 250 jobs
- Ferrero insists Nutella not pulled from shelves
- Lindt sees FY sales acceleration on Europe growth