Posted March 26, 2018 08:03:18If you want to be an investor in the near future, the biggest investment opportunities are probably in emerging markets, according to a new report from Nomura, a Japanese financial services company.
The firm says the global capital markets are expected to be $4 trillion to $5 trillion in size in 2025, which would give a huge opportunity for the average person to gain access to the vast array of wealth in emerging market markets.
Investors should start with China and the Middle East, according the report, because of the sheer number of assets available.
China alone is expected to have $500 trillion in assets, and with the exception of the Middle Eastern region, this will make up over 90 percent of all global capital.
Nomura expects to see this total grow by about $150 trillion in 2025.
China is by far the largest economy in the world, with an estimated $18 trillion of assets.
It is also the only developed country that has not entered the “golden age” of economic growth.
The report attributes the global economic growth slowdown to a combination of factors, including the global recession, and a sharp slowdown in growth in China.
That slowdown is still ongoing, however, and the country will likely remain the largest and fastest-growing economy for the foreseeable future.
A few of the countries in the top 10 for global assets are also the most vulnerable to the economic slowdown: Nigeria, South Korea, and Russia.
In the United States, the United Kingdom and Canada, among others, are also among the worst-performing economies, according Nomura.
Investor sentiment has also been on a downward trend, with Nomura predicting the global stock market will fall by about 10 percent this year, and by around another 15 percent in 2020.
That’s a huge hit for investors.
Nomina also notes that the global financial system is experiencing its own severe liquidity problems, and there are fears that it will have to be shut down for the coming months.
The report is based on a survey of more than 1,000 people in the United Nations and 50 countries that were asked about the most promising investment opportunities in emerging-market economies, as well as their risks.
Nomada says the survey was conducted by a representative sample of investors and analysts, and that the results reflect the views of Nomura clients and investors around the world.
Here are some key findings:The top five prospects for investing in emerging economies are China, Russia, Nigeria, India, and Brazil.
Investment opportunities in Nigeria are likely to be in the health, construction, and agricultural sectors.
Investing in the construction sector is especially attractive because it’s growing in value as the world population ages and becomes more dependent on the economy, according Toomas Söderqvist, Nomura’s chief investment officer.
The most promising emerging-markets investments are likely in India, China, and South Korea.
Nigeria, Russia and South Africa are the largest economies by GDP, with China growing by over 2.5 percent a year.
The top two prospects for investors in India are oil and gold, according Söndqvist.
Gold has been surging in value in recent years and is projected to grow by 25 percent over the next 10 years, while oil is projected by some to reach $100 a barrel by 2035.
Investments in Nigeria will likely be in mining and oil extraction.
The country has seen a steep drop in the value of its currency over the past year, but it’s forecast to grow at a faster rate.
Investing in oil and metals is expected by many to be one of the more attractive investment opportunities.
Nigeria has seen significant growth in its oil and gas sector in recent decades, and is expected at least to double its share of the global total within the next decade.
The world is now expected to consume around 2.3 trillion barrels of oil and 1.7 trillion barrels in natural gas by 2040, according a recent report from Goldman Sachs.
Investers in Russia will be interested in the telecommunications and financial sectors.
In recent years, Russia has experienced a significant drop in its currency, but its growth is projected in the next five years to be higher than that of most of the emerging economies.
Investigations in India and Brazil are expected by Nomura to be among the most attractive investments, especially because of their diversification of assets and high growth potentials.
Nomadas research found that the most-valuable assets in India were energy and agriculture, followed by infrastructure and real estate.
Investoring in China and South America are among the more appealing investments.
Investors in China are expected in the technology and financial industries, and investors in Brazil are in mining, manufacturing, and utilities.
Investors should expect China to continue to grow rapidly for the next few years, but South America will likely see its own growth slowdown in the coming years, according Ines J. Günter, Nomada’s chief economist.
Investes in South Korea
