{"id":92769,"date":"2016-07-12T07:50:50","date_gmt":"2016-07-12T11:50:50","guid":{"rendered":"http:\/\/countingpips.com\/?p=92769"},"modified":"2016-07-12T07:50:50","modified_gmt":"2016-07-12T11:50:50","slug":"why-mongolia-offers-strong-investment-upside","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/07\/why-mongolia-offers-strong-investment-upside\/","title":{"rendered":"Why Mongolia Offers Strong Investment Upside"},"content":{"rendered":"
July 12, 2016<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Why<\/p>\n

\u201cWe believe we\u2019re at the bottom there. We\u2019re keen on consumer goods and industrial companies.\u201d<\/em><\/p>\n

So said Thomas Hugger, CEO of the AFC Asia Frontier Capital Fund, while referring to the investment opportunities in Mongolia at the moment.<\/p>\n

I agree with him. The country offers significant upside.<\/p>\n

Since I spoke at the opening of the Mongolian Stock Exchange in 1991, I\u2019ve kept a keen eye on the country\u2019s fortunes, plus those of its market.<\/p>\n

And unbeknownst to many investors, this is an emerging market that\u2019s truly worthy of its name.<\/p>

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Political Shift Set to Fuel the Next Bull Market<\/h2>\n

If you\u2019re looking for a current catalyst, the recent parliamentary elections in Mongolia resulted in a massive 85% majority win by the opposition MPP party.<\/p>\n

This will likely fuel a rebound in Mongolia\u2019s economy and stock market.<\/p>\n

As with many elections, the economy was a key issue. In 2015, Mongolia\u2019s GDP growth dribbled in at 0.4% \u2013 a far cry from the outstanding 17.5% chalked up in 2011.<\/p>\n

If the MPP\u2019s pro-growth campaign agenda is enacted, foreign investment should surge and Mongolia\u2019s economy could regain its place as the fastest growing economy in the world.<\/p>\n

That being said, the Mongolia Stock Exchange isn\u2019t for the faint-hearted. But if you can tolerate the ebbs and flows of an emerging market, keep in mind that those who positioned themselves before the last sharp rebound in Mongolia were rewarded with returns of 121% in 2010, and 58% in 2011.<\/p>\n

Since all great bull markets begin with significant economic or political reform, it could happen again.<\/p>\n

But where do you invest?<\/p>\n

Mining is Good\u2026 But This Area is Better<\/h2>\n

When most investors think of Mongolia, their minds turn towards the mining industry. And with good reason, too.<\/p>\n