Stock Exchange | Smaller Stock Markets Can Only Go Up

By Thomas Kostigen

SANTA MONICA, Calif. (Reuters) "The world 's smallest bag opened last week in Cambodia and joins a growing number of small exchanges of the border of the developing countries.

In places like Laos (which opened its stock exchange for six months), Mozambique and Cameroon, only a few companies literally can be listed. However, these bags have the greatest potential for trade and in the future.

Markets these exchanges serve impact on the lives and livelihoods of thousands of people in more ways than just the promotion of financial values. Healthcare, education and other social values ??also rose. What is important given the high incidence of poverty in these nations.

Undoubtedly, China and India are the countries that will when people think of strong economic growth and power. Africa and Southeast Asia should not 't be counted, however. In fact, some economists believe that the potential of Africa 's growth alone could exceed the average expected growth for the countries of BRIC "Brazil, Russia, India and China.

Africa has an abundance of the world 's natural resources "13% of the world' s oil reserves, 50% proven gold reserves, 50% of iron ore reserves, 60% cobalt, and 90% of the platinum group reservation, according to published reports. And since the population growth strains the earth supplies' s natural goods, Africa and other places rich in natural resources will be able to take advantage of their wealth . Southeast Asia has rubber, timber, palm oil, and a host of other products to offer.

China is already showing its appetite for raw materials and even land in Africa and Southeast Asia. So instead of investing in the buyer, why not go for the seller?

It 's impossible to invest with any company listed on the stock exchange in Cambodia, because there are no companies listed on the stock exchange in Cambodia. Next door in Laos, investors have the option of two lists dizzying to choose from: a bank and a power company. In fact, among the world 's smallest dozen exchanges, most of the operations of any of the 20 market companies, and that' s in Syria "is not a very stable these days.

Smaller exchanges world 's are, in order of increasing size: Cambodia, Mozambique, Laos, Cameroon, Maldives, Cape Verde, Swaziland, Namibia, Libya, Armenia, Tanzania, and Syria. There combined market capitalization is much less than 1% of the New York Stock Exchange.

On a percentage basis, however, I bet that these markets are rudimentary beat anything the developed world has to offer. In fact, in the first days after opening the exchange of Laos more than 80% zoom. Plummeted after, and remains volatile. However, obstacles in the way expected in places such brave, but 'll take a long time before they are cultivated and domesticated.

Take Mongolia. It 's other "salesman" for the world as it' s full of natural resources. Its stock market is gaining the attention of bankers in London and Hong Kong, and many see it as the Wild West version of Silicon Valley. This year, linked to the LSE, which will oversee the privatization and operations. (The Financial Times recently called Mongolia "Boomtown" because it 's one of the most attractive destinations for investment of resources at present.)

So while the world s smallest change in Cambodia can have nothing to fair trade, however, that 's worth keeping an eye out for listings. It may be the only investment market in the world that 's safe to say now that things can only go up.