- As a result of next week’s virtually certain interest rate hike in the United States, emerging stocks and currencies had a second straight week loss on Friday (10th March). The move is expected to hit emerging equities and currencies. Weirdly, in this world of uncertainty, on Monday emerging markets stocks recovered by the strong showing of metals stocks, China’s economy showing new strength with Brazil and India rallying.
- There are many reasons as to why the interest rate hike will affect emerging markets. One example is that higher interest rates could potentially decrease foreign investment
Super Rich and Ultra Rich of the Emerging Markets
Insights from The Knight Frank’s 2017 wealth report reveals that the Emerging markets are minting new millionaires.
- Tanzania’s ‘super rich’ reached a total of 2,400 after creating 200 new dollar millionaires in 2016 which is an increase of 9% compared to its performance in the previous year.
- Despite its impressive performance, Tanzania came second to Kenya in East Africa which created 900 new dollar millionaires.
- Vietnam has 200 ‘ultra-high net worth individuals (people with investable assets of at least $30 million, excluding personal assets and property). The group is growing faster than any other economy in the world and on track to continue the growth into the next decade.
- With a 12% increase, India ranked sixth in terms of ultra-high net worth individuals but is expected to reach third within the next decade. The country currently has around 2% of the world’s millionaires (13.6 million) and 5% of world’s billionaires (2,024).
Bitcoin – quick update on the previous blog
- On 2nd March, Bitcoin’s worth was more than gold. It may seem as though much of it was fuelled by speculation that a bitcoin ETF could be approved by the Securities and Exchange Commission (SEC) as the currency’s value fell by 18% from nearly $1,300 to $1,060 after the proposal was declined by the SEC. However, the value of Bitcoin has since recovered to $1,233 as believers have taken the set back as just as another challenge.