November, 30

Investing in Emerging Markets(29) Review (5)

Key vocabulary

1.       inevitable =unavoidable

2.       nest egg=money that is saved to pay for something in the future, usually a house, or retirement(储备金)

3.       turmoil= a state of confusion, disorder, disturbance

4.       stimulus package=amount of money the government uses to improve the ecnomy

5.       emerging market=nations undergoing quick industrialization

6.       devalue=reduced in value

7.       naïve=天真的

8.       domestic=国内的

9.       mattress=棉被

 

A: Dad, I’d like to borrow some money.

B: Sure, Johnny, how much do you need? five bucks?

A: Come on, Dad, I need thirty thousand. I wanna get into the market. You know, I am tired of hearing all this news about the economic downturn, the inevitable recession, people stuffing their money in their mattresses. I look at this as an opportunity, this is a chance for me to get a jump start on building my nest egg.

B: I don’t know about that; with all the uncertainty in the markets right now, it would be a very unwise decision to invest. I don’t know if you are aware son, but there has been a lot of turmoil in the markets recently. There have already been half a million layoffs in the last few months, and we have no idea how the proposed stimulus package will impact the economy. There’s just too much instability. I wouldn’t feel comfortable investing in this climate.

A: But look at it this way, every challenge is an opportunity. And anyway, I am not talking about investing in the domestic market. There are emerging markets that promise great returns. Look at China, for example; they have 1.4 billion people, half a billion of whom have recently entered the middle class. Here alone, the aggregate demand for consumer goods represents an amazing wealth generation opportunity.

B: Come on, son, you are looking at this too naively, the Chinese market has exhibited a great deal of instability, and their currency has been devalued by almost a whole percentage point.

A: Fine, then! If that’s the way you feel, so be it. But you are losing out on a great opportunity here. I am going to go hit up Mum for the cash.