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

inevitable

Adjective

unavoidable

nest egg

common noun, singular

money that is saved to pay for something in the future, usually a house, or retirement

turmoil

common noun, non-variable

a state of confusion, disorder, disturbance

stimulus package

phrase

amount of money the government uses to improve the economy

common noun, non-variable

state of not being stable, being likely to change

emerging market

common noun, plural

nations undergoing quick industrialization

Adjective

combined

devalue

verb

reduced in value

hit up

verb

ask for money

Supplementary Vocabulary

depreciation

common noun, non-variable

an decrease in the value of something

appreciation

common noun, non-variable

an increase in the value of something

inflation

common noun, non-variable

an continual increase in price

developing economy

common noun, plural

growing economy

rapidly developing country

common noun, plural

countries undergoing quick industrialization

industrialized nation

common noun, plural

nations that have developed factories and businesses