With a career in finance spanning over two decades, Brian Lippey operates as the CEO of Greenwich, Connecticut-based Caledonia Partners, LLC. Drawing on his experience, Brian Lippey presented a lecture series for students at Columbia University in 2013. Below are some key highlights regarding emerging markets from that series.
Emerging markets, and a less developed subset of countries known as frontier markets, pose a unique assortment of challenges to investors. First, they tend to be less liquid than developed markets. Additionally, these regions commonly face volatile political climates and under-developed institutions. Investors might face problems when it comes to unloading their positions since many overseas buyers are risk averse and there are often few local buyers. Myanmar illustrates this problem, because the potential for profitable investment is significant, yet the government Institutions and polices are still evolving.
Despite these obstacles, emerging markets pose a number of advantages for savvy investors. They commonly boast a wealth of natural resources, strategic locations, and an underdeveloped infrastructure, all of which offer niche markets for financiers
