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