This tourist paradise of Southeast Asia is also turning into a viable investment option to global businesses. Even though Thai valuations are not cheap, the market’s growth indicators remain solid with stable momentum. With a demographic that loves fashion, technology and recreational activities, Thailand is turning into a head-turner in the investment sector.
Bond markets are not generally favorable for investments, but watch out for Egypt! The short term debt yields over 10% in the latest valuations while the long term sovereigns that are due in 2020 and priced in dollars have a projected yield of over 5.5%. With a reclaimed enthusiasm in the tourism sector, an advent of technological companies and the booming construction sector, the Egyptian market has no intention of slowing down anytime soon.
The country is turning into the darling of big emerging markets this year. The iShares MSCI Turkey is an outperformer, up 2.76% YTD. But what the investors love most about Turkey is its yield. Turkish sovereign bonds for 2 years yield over an attractive 5.7%, making it a key player in the global investment front.
The fiscal policy of Japan is improving. The government just reduced its corporate tax rate to 32.11% and the prime minister has promised to lower it below 30% soon enough. These policy changes have had their impact on the Japanese stock markets and FDI enthusiasm, and considering that the Japanese cabinet advocates a reduction of the taxes as low as 20% in the long term, the Japanese investments are expected to pay off strongly for the foreseeable future.
This European powerhouse has been on the investment map for a while now. With no major fiscal policy in the market and the European Central Bank’s QE policies supporting German equity prices, the market is projecting dynamic growth and momentum. The dominant automobile sector of Germany, which saw a downfall with the Volkswagen scandal, is on the path of rejuvenation as well and all the factors are lining up in favor of investing in Germany for short-long terms.
The Irish stock markets are the favorites of almost every progressive investor and they are expected to perform better than any other European recovery scenario. The fiscal policy is improving and by exiting the bailout agreement in 2013, Ireland is in a strong position to tackle any anti-growth pressure.
The Danish market is at an interesting juncture at the moment. With the currency tightly pegged into the euro, if the euro’s fortune changes with the continuing efforts of the European Union, the Danish Krone will also follow a similar pattern and outperform. There is no fiscal deterioration expected and the corporate taxes were reduced to 23.5% this year.
Spain is also expected to outperform any European recovery markets, and the government has taken key measures to maximally utilize this upcoming opportunity. The corporate taxes were reduced to 28% this year and the top marginal tax on income was brought down to 47% from 56%. Meanwhile the tax on savings has also been steadily reduced. More money for the locals means more money for the consumers and shareholders.
By containing the banking issues of 2014 and improving fiscal policy, Portugal is expected to lead any European recovery scenario. The sudden spur in construction, an improved corporate policy and liberalized business measures for foreign investors have made Portugal a very attractive investment destination for the future.
South Korea’s strength lies in its attractive valuations of the market, which includes an 8.7x forecast of the 2013 price-to-earnings ratio. Their stock market has been under-performing lately, but according to experts this is going to change quickly. This makes it the best time to buy off the market dominated by Kia, Hyundai, and Samsung.
A market very similar to that of India, China is recovering from the slight decline it saw in its development index. China is already a buzzing territory of a variety of options, liberal policies, and massive user space, making it one of the favorite investment-inviting nations in the world. Most of the western brands including Coca-Cola, Apple, Yum! Brands, etc. are busy establishing their dominance over the Chinese market and this has opened up a lot of related investment avenues in areas like technology, construction, telecommunications, and information technology.
One of the fastest growing economies in the world, India is a hot spot for every major businesses and investor around the globe. A massive domain of over 1.3 billion people, favorable government policies and the flexibility of the market opens up numerous investment opportunities. With the government’s ‘Make in India’ campaign, the manufacturing sector has seen a major leap alongside the already promising sectors of Information Technology and Retail.