Blog Posts - Frontier Markets



Frontier Markets! These Prices are IN-SANE!

Sometimes when I read mainstream financial media coverage of how frontier and emerging markets are booming-heaving-climbing-winning-advancing-accelerating-faster-bigger-better-more, I get this weird sensation in my gut. It’s like I’m listening to...
by Diverging Markets on Feb 5, 2013

Caravel Management makes a case for Frontier Markets

You may have heard by now that the jig is up on the BRIC acronym as an investment class. But we’ll all still have to spend at least another couple years discussing how it doesn’t work, so if you’re just … Continue reading →...
by Diverging Markets on Jan 31, 2013

Laos: Not the new Vietnam, Thailand, China or anything else

The Wall Street Journal is running an infograph (infographic? infographical?) that illustrates rather vividly the limits of investing in markets like Laos: The most noteworthy point here is annual FDI to the country. Even with the “boom”...
by Diverging Markets on Jan 29, 2013

Chart of the Day: Frontier Markets Fixed Income Yields

We would be wise remind ourselves first of the definition of the impossible trinity: it is impossible to have (a) a fixed exchange rate, (b) absence of capital controls and (c) an independent monetary policy. Remember that. I’m going to …...
by Diverging Markets on Jan 23, 2013

Chart of the Day: The top 10 stock exchanges of 2012

This is actually going to be a few charts, because the first chart as you can see looks ridiculous: It should go without saying that there’s something very wrong with this picture, and indeed Miguel Octavio sums it up better … Continue re...
by Diverging Markets on Jan 16, 2013

New Beverage of Choice For Political Risk Analysts: Mexican Kool-Aid

Ian Bremmer is on the take. Eurasia Group released its “Top Risks for 2013” report last week. It’s interesting, and it’s worth reading if political risk is your sort of thing. But pretty early on this part stood out to … Continue readin...
by Diverging Markets on Jan 14, 2013

Chart of the day: Fastest growing and shrinking economies of 2013

From the Economist Intelligence Unit:...
by Diverging Markets on Jan 8, 2013

Questions to ask when vetting Frontier Markets fund managers

Anyone who shares the opinion that New York Times coverage of an investment trend augurs its peak should be thinking twice about frontier markets allocation this year after its December 27 profile of Leopard Capital’s Doug Clayton. You can have...
by Diverging Markets on Jan 7, 2013

Chart of the Day: Frontier Markets correlations

Sourced from Index Universe:...
by Diverging Markets on Jan 4, 2013

“Zambia is an Argentina without a Christina Kirchner”

Everything here I consider of equal importance but the fact of how we digest information is that something must come first. So let’s start with that headline quote, which came from Michael Power of Investec Asset Management in this 12 … Conti...
by Diverging Markets on Dec 5, 2012

Top 10 Market Themes for 2013 from Goldman Sachs

Before I get into this, let me first say that I am a believer in full transparency. So while I would love to source this top 10 list to an actual Goldman Sachs report, I can find no such report … Continue reading →...
by Diverging Markets on Nov 29, 2012

Local Currency Bonds: Managing Expectations for the Masses

First the quote, then a few comments. From Jan Dehn of Ashmore, in the FT: Local currency government bonds – an investment grade asset class – have particularly attractive features. Exposure today to diversified 5-year duration risk in local bond...
by Diverging Markets on Nov 27, 2012

Heineken needs better roads, more electricity for brewing beer in Africa

Siep Hiemstra, Heineken’s President for Africa & Middle East, discusses Africa strategy for the brewer’s 57 plants in 20 countries across the continent and similarities between Africa today and Southeast Asia in the early 1990s (CNBC Africa):...
by Diverging Markets on Nov 15, 2012

Rapid Growth Markets: Behold THE FUTURE

I’ve just spent way too much time playing with Ernst & Young’s interactive spider graph thingy that allows you to compare their 25 “rapid-growth” markets across a range of macroeconomic indicators. According to E&Y, these 25 countries...
by Diverging Markets on Nov 14, 2012

Latin America as Microfinance’s beacon

Latin America as Microfinance’s beaconWhile increasing attention is being given to the less than scrupulous elements of the microfinance industry, I thought it curious that the Economist Intelligence Unit’s annual “Global microscope on the...
by Diverging Markets on Nov 8, 2012

9 Emerging and Frontier Markets Uncle Sam wants YOU to export to

9 Emerging and Frontier Markets Uncle Sam wants YOU to export toOn the heels of the latest update to the World Bank’s annual Doing Business index, I thought I would use this opportunity to try a different take on the usual blather surrounding this...
by Diverging Markets on Nov 7, 2012

Roosevelt Investments’ Tim Ramsey likes Nigeria, Pakistan, Kazakhstan and Argentina (sort of)

Roosevelt Investments’ Tim Ramsey likes Nigeria, Pakistan, Kazakhstan and Argentina (sort of)Worth a few minutes for the commentary. Note his explanation in particular of Argentina–it’s about relativity: Source link is here.Diverging Ma...
by Diverging Markets on Nov 5, 2012

The African Opportunity, as told by statistics

The African Opportunity, as told by statisticsI’m not sure a) how much I believe these statistics or b) if they are true, how meaningful they are, but nevertheless, they’re out there: 20%: The annual growth in mobile phone sales in Africa...
by Diverging Markets on Nov 2, 2012

EMPEA’s Sarah Alexander on a post-BRIC world

EMPEA’s Sarah Alexander on a post-BRIC worldAn old saw from the journalism universe is that once you start hearing the same quotes from different people, it means one of two things: either you’ve reported the hell out of the story and it’s time...
by Diverging Markets on Oct 25, 2012

The evolving perception of risk in Emerging Markets

The evolving perception of risk in Emerging MarketsAnother interview transcription today, and even though it’s a couple months old, Mark Mobius does say some important things in here that are worth keeping under our hats and they’re at too many p...
by Diverging Markets on Oct 24, 2012


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