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.

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Forty Under 40

By Bridget Broihahn

Central Illinois Business Magazine and The News-Gazette are proud to announce the 8th annual Forty Under 40 award recipients for 2015. The winners have been chosen by an independent panel of judges based on achievement, experience, innovation, leadership and community involvement. Two people have been recognized among the 40 winners as Woman and Man of the Year.

Profiles featuring the winners will be published in Central Illinois Business Magazine’s October/November edition. Winners will also be recognized at a luncheon Oct. 8 at the Hilton Garden Inn, Champaign.

Tickets for the luncheon are $25 and can be purchased by going to news-gazette.com/luncheon or by contacting Sarah Scott at sscott@news-gazette.com. Anyone interested in formally congratulating the winners may purchase a celebratory message to be published in the Forty Under 40 edition of Central Illinois Business Magazine by contacting Pat Crotzer at 217-351-5276 or pcrotzer@news-gazette.com.

Forty Under 40 Awards are sponsored by Central Illinois Business Magazine, The News-Gazette, Busey Bank, and Hilton Garden Inn.

Bridget Broihahn is editor of Central Illinois Business magazine. She can be reached at 217-351-5695 or bbroihahn@news-gazette.com.