Global View - Investing in Emerging Markets(0029)

A:  Dad, I'd like to borrow some money.
B:  Sure, Johnny, how much do you need? Five bucks?
A:  Come on, Dad, I need thirty thousand. I wanna get into the market. You know, I'm tired of hearing all this news about the economic downturn, the inevitable recession, people stuffing their money in their mattresse
B:  I don't know about that; with all the uncertainty in the market right now, it would be a very unwise decision to invest. I don't know if you're aware son, but there has been a lot of turmoil in the markets recentl
A:  But look at it this way, every challenge is an opportunity. And anyway, I'm not talking about investing in the domestic market. There are emerging markets that promise great returns. Look at China, for example; th
B:  Come on son, you're looking at this too naively, the Chinese market has exhibited a great deal of instability, and their currency has been devalued by almost a whole percentage point.
A:  Fine, then! If that's the way you feel, so be it. But you're losing out on a great opportunity here. I'm going to go hit up Mom for the cash.

Key Vocabulary

nest eggcommon noun, singularmoney that is saved to pay for something in the future, usually a house, or retirement
turmoilcommon noun, non-variablea state of confusion, disorder, disturbance
stimulus packagephraseamount of money the government uses to improve the economy
common noun, non-variablestate of not being stable, being likely to change
emerging marketcommon noun, pluralnations undergoing quick industrialization
devalueverbreduced in value
hit upverbask for money

Supplementary Vocabulary

depreciationcommon noun, non-variablean decrease in the value of something
appreciationcommon noun, non-variablean increase in the value of something
inflationcommon noun, non-variablean continual increase in price
developing economycommon noun, pluralgrowing economy
rapidly developing countrycommon noun, pluralcountries undergoing quick industrialization
industrialized nationcommon noun, pluralnations that have developed factories and businesses