Central Illinois Business Magazine
NOT SO FAST          October 2013

Exporting Strength


It's becoming clear what separates winners from losers in emerging-market stocks.

On the winning side are exporting countries; on the losing, net importers. Although investors generally lump emerging-market stocks together as a high-risk investment with potentially higher rewards, the two groups have emerged since late June. That's when countries that export more than they import began to climb, while net importers continued to struggle. Both fell earlier this summer on worries about slowing economic growth and a pullback in stimulus by the Federal Reserve.

Stocks from export-heavy South Korea, for example, are down 1 percent this year in U.S. dollar terms, after being down 19 percent in late June. The country's big exporters like Samsung and Hyundai are benefiting from stronger demand from U.S. customers and from a recovering Europe. China, Russia and other big exporters have likewise seen their markets rise.

But net importers like India and Indonesia continue to struggle because their industries don't generate as much revenue from developed economies. They're also feeling more pain due to expectations that the Fed will slow its bond-buying stimulus program, says S&P Capital IQ strategist Alec Young, which is causing U.S. interest rates to rise. Higher U.S. rates would mean less foreign investment flowing in, which India and others have used to cover their trade gaps.



Back to top

Privacy Policy

Part of The News-Gazette, Inc. community of websites:
News-Gazette  |  IlliniHQ  |  Business Directory  |  WDWS  |  WHMS  |  idomagazine

Google

The Net www.centralillinoisbusiness.com
Editor's Note

Welcome Home

With spring comes the season for homebuying and homebuilding. I’ve noticed homes in my neighborhood have been selling more quickly than in the past few years. And several homebuilders I talked with for this issue’s cover story are optimistic about what this season will bring.

The Home Builders Association of East Central Illinois will have its Showcase of Homes in the Prairie Meadows subdivision in Savoy from June 12 to 22 — the first showcase in five years. I’m looking forward to checking it out and seeing the craftsmanship of area homebuilders.

Also in this issue, we have a profile of architect Andrew Fell, who has designed both single-family homes and numerous apartment buildings in our community.

Two University of Illinois professors are hoping they can influence the paper industry to be more environmentally friendly. They’re experimenting with making paper from native prairie grasses and agricultural waste. Read about them in the Innovation feature.

Enjoy this issue, and the spring season.

Jodi Heckel is editor of Central Illinois Business magazine. She can be reached at 217-351-5695 or jheckel@news-gazette.com.