Question

As an investor, what factors would you consider before investing in the emerging stock market of a developing country?

Answer 1

I will be considering various factors before investing in emerging stock market of a developing country-

A. I will be considering the monetary policy of their Central banks and the stability of the monetary policy

B. I will also be considering the exchange rate consideration in my overall investment context and the stability of the interest rate

C. political stability is another important factor which will be considered before investment into a developing market

D. there has to be consideration about the foreign direct investment rules and regulation in respect to the emerging Markets and there has to be established in this rules

E. I will also consider the inflation and the overall inflation expectation in the economy in the next few years.

F. I will consider the level of the corporate governance and the integrity of the regulator of the markets.