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Investors’ global appetite growing

With worldwide investments expected to double to almost $300 trillion by 2015, institutional investors must now think Turkey and China. Ashley Milne-Tyte looks at the growing importance of emerging markets.

TEXT OF STORY

Scott Jagow: Despite its problems, China is still the fastest growing economy in the world. Last month, foreign direct investment hit $6.5 billion. That’s a 22 percent increase over last year. A new study from IBM and the Economist Intelligence Unit looks at this wave of cash pouring into emerging markets. Here’s Ashley Milne-Tyte.


Ashley Milne-Tyte: Twice as much growth is likely to occur in emerging markets than mature markets like the U.S.

That’s not to say the U.S. market won’t continue to dwarf others, says IBM’s Wendy Feller, but there’ll be a lot of competition from up-and-comers like China, Indonesia and Turkey.

Feller says institutional investors could stick to their own profitable backyards until recently, but things are changing.

Wendy Feller: It’s going to be more and more difficult to innovate and to create the level of profits that you’ve been able to do in the past. So organizations are having to look global to earn the level of profits they anticipate going forward.

She says newly-educated, Internet-savvy individual investors in countries like India may help spur the global markets boom.

Also, she says, more and more financial services firms are marketing international assets to their clients.

In New York, I’m Ashley Milne-Tyte for Marketplace.

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