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Frontier Markets: Living In Their Own World | Larry Speidell Real Vision Video - Duration: 3:45.
The real message here, about low volatility, is one that has to do with the low
correlation of the stock markets across these countries.
And when you look at low volatility of the major categories of
world indexes, what you find is that the U.S. has a 36 month standard deviation
of market movements of a little over 10%.
That developed countries outside the U.S., it's a little over 12%.
That immersion countries it's a little over, well, almost 16%.
But then, guess what, for the frontier countries, it's just
a little over 11%.
How can this be?
Well, the answer to that is that these frontier countries move
independently of one another.
So investors in Botswana don't really know what investors in Bangladesh are doing, nor
do they care.
And when you combine 30 or so frontier countries, each
of which may be moving up and down quite a lot, you have an end result,
which is this low volatility.
So we looked at, for example, the volatility in individual countries.
The 25 most volatile countries include 9 frontier
markets, 13 are in emerging, and 3 are developed.
But having said that, when you look at the cross-correlation--
which is every country relative to the other countries in its category-- frontier,
emerging, and developed-- what you find is that the average cross-country
correlation is 0.17 for the frontier.
It's a little over 0.4 for emerging.
And it's nearly 0.6 for developed countries.
What this is simply saying is that when something happens at the Federal
Reserve or a government shutdown in Washington, the developed countries
all feed off of that and tend to move in the same direction as the US market.
But not so when you come to frontier.
They live in their own world.
And so, when you can add frontier to a portfolio, you get a real benefit in risk
reduction, in reduction of the overall standard deviation, which comes from
this low volatility.
Well, the question of what do you look for when you go to these frontier
countries-- there's something that I like to call the walking around GDP.
And that's to say that if you just look at statistics
from the World Bank, you can see that there's a huge gulf between where the
poorer countries in the world are and the rich places-- like the US and Europe--
things we take for granted are not generally available.
However, as soon as you get off the plane, you walk around you see people
with cell phones.
You see restaurants and bars.
You see people active and vibrant.
Entrepreneurs on the streets, if you will.
This walking around GDP gives you a sense that's very different from
the notion of lassitude or laziness that you might get from just reading about
frontier countries.
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Ankara University Introductory Movie 2015 online video cutter com - Duration: 1:36.
Üniversite insanın hayatındaki en önemli dönem geri kalan hayatında ne yapmak istediğini belirleyecek olan süreç
Ankara Üniversitesi'ne gelmeden önce ne beklediğimi bilmiyordum
ama bunu beklemiyordum bakış açınız tamamiyle değişiyor yaptığım en iyi seçim burada
emin ellerde kendimi evimde gibi hissediyorum Kendimi özgürce ifade edebilirim
işte bu benim burada ondan nedenim Bizim amacımız bütün öğrencilerimizin hayatında bir değişim
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mümkün değil yapmak istediğim her şeyi yapıyor öğrenmek istediğim her şeyi öğreniyorum
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