englishpod_E0029dg

Elementary ‐Advanced ‐ Investing in Emerging
Markets (E0029)
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 mattresses. I look at
this as an opportunity. This is a chance for me to get a
jump start on building my nest egg.
B: I don’t know about that; with all the uncertainty in the
markets 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 recently. There have
already been half a million layoffs in the last few months,
and we have no idea how the proposed stimulus package
will impact the economy. There’s just too much instability.
I wouldn’t feel comfortable investing in this climate.
A: But look at it this way, every challenge is an
opportunity. And anyway, I’m not talking about investing
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in the domestic market. There are emerging markets that
promise great returns. Look at China, for example; they
have 1.4 billion people, half a billion of whom have
recently entered the middle class. Here alone, the
aggregate demand for consumer goods rePresents an
amazing wealth generating opportunity.
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 Mum for the cash.