Emerging economic markets offer opportunities

Slow global growth may have tamed the Asian Tigers and left the BRICS nations with shakier foundations but analysts say there are plenty of opportunities in emerging markets. Africa and Eastern Europe may offer large returns for those with the cash and the courage to continue investing.

In trying to revive their economies the U.S. Federal Reserve and European Central Bank may find their money goes further than forecast. Further in the geographical sense.

Keep rates at record lows and flood the market with liquidity and your cash may head overseas in search of higher returns.The Institute of International Finance says investments in emerging markets will rise to 1.1 trillion dollars next year, the first increase since 2010.With Asian Tigers losing speed economies once considered too risky are starting to look attractive.

Emerging Market Fund Managers such as Templeton say Africa offers ample opportunities long term. Welcome news for the region`s finance ministers.

Saara Kuugougelwa-amadhila, Namibian Finance Minister, says, "Now is the opportunity for Africa to show that there are opportunities that can be tapped to the mutual benefit of Africans and international investors. Conflicts are being resolved.

Countries are showing increasing commitment to macroeconomic management and most of the countries are seeking credit ratings including Namibia and they`re getting investment grades."

But a sudden flood of cash can cause problems as Southeast Asia found out during the first two round of U-S quantitative easing.

Capital flooded into Thailand, Malaysia and Indonesia, sending their currencies soaring against the dollar. African leaders say they don`t have the infrastructure to trade with their neighbors.

There are alternatives to the cooling Asean economies that don`t offer the risks of Sub-Saharan Africa.HSBC says Mexico offers a familiar alternative for jaded US investors, it even likes a country with ringside seats to the European-Debt crisis without the problems of neighboring Greece.

Murat Ulgen, chief economist of HSBC central, eastern Europe & sub Saharan Africa, says, "Turkey has a very strong banking system. A very benign and good public sector debt dynamics. It has been persistently coming down It's a private sector economy. You have democratic advantage. And Turkey has been one of the biggest maybe the biggest employment generator in the post-crisis world."

Whether or not you chose to follow Dr Ulgen`s advice you could learn an investment lesson from the concept of a Turkish economist giving advice for the UK-based Hongkong and Shanghai Bank.A geographically diverse portfolio is one way of spreading the risk.