In a post Brexit world, emerging markets are suddenly looking very attractive for investors, reports CNBC.

Once shunned by investors for being volatile, emerging markets have gained a certain appeal following Brexit, which sent shockwaves to global markets after the UK decided to leave the European Union.

Some fund managers have low exposure to emerging markets, having pulled out of them as concerns about China’s sharp slowdown weighed on the outlook. Following Brexit, a global flight to quality trade has helped send the S&P 500 to all time highs and long end US treasury yields to record breaking lows.

Analysts are concerned about the limit of gains in US assets.

If the dollar stays steady, market strategists see opportunity in diversifying to emerging markets where growth forecasts remain higher than in developed markets.

According to BlackRock Investment Institute, having a degree of exposure to emerging market is part of having a diversified portfolio. Currencies and trade balance have adjusted following Brexit, and markets in Southeast Asia stand out in an environment of lagging global growth.

The World Bank expects emerging markets and developing economies to grow at a 3.5% rate this year, while advanced economies should see just a 1.7% rate

Exposure in the Southeast Asian market, or other emerging markets brings an element of diversification which can help buffer one’s portfolio against market downturns possible at any period of time. The interest in emerging economies can go onto positively impact all sectors and industries, whether it’s tech, healthcare or finance.

The next investing mega-trend may be adoption of middle-class lifestyles on a global scale with huge implications for global providers of goods and services.

The downturn of the West’s venture capital market is also a post Brexit reaction, as investors in UK startups are wary of the change. The world has shrunk according to President Barack Obama but emerging markets in the Southeast Asian region may be lucky enough to come out of a global slowdown as the unlikely winners.

A version of this appeared in CNBC on July 14. Read the full version here.

Thai protests in Bangkok

Despite barricades all around the city, Thai businesses found a way to carry on.

In an interview with BBC News, aCommerce Founder and Group CEO Paul Srivorakul talks about setting up a company in the middle of a political coup and how, despite the turmoil, the tech logistics startup managed to find a silver lining during a tumultuous situation.


People stayed at home. They were scared to go out and shop, therefore they did more ecommerce.- Paul Srivorakul

The experience showed the American-Thai CEO that businesses should not be reliant in one area, especially in a developing country such as Thailand, where risks are higher. Diversification of services offered, as well as geographical diversity can also enhance business visibility and minimize risk when there is an issue in one market.

Siam Piwat Group, a Thailand based shopping mall and real estate enterprise also has a policy of actively trying to invest and expand in a time of domestic turmoil. Siam Piwat owns and manages Siam Paragon, one of Bangkok’s most iconic luxury shopping center. CEO Chadatip Chutrakul says this decision makes sense, as it is the cheapest time to do so.

All the construction costs go down. When we build, it takes around two to three years to complete. By that time, the economy would catch up, which it did everytime- Chadatip Chutrakul, CEO of Siam Piwat Group

Despite Thailand’s political instability, growth in the country remains relatively robust. Thailand’s GDP grew 3.2% year-on-year in Q1 of this year, up from the previous quarter’s 2.8% growth. During times of turmoil, private companies mostly continued operating as normal, with ongoing instability making companies more efficient. Ho Ren Hua, CEO of Thai Wah Group, a large food products business with operations across Asia, credits Thailand’s private companies as growth enablers.

The role of the private sector is to continue to help deliver economic growth, innovating new jobs and services.- Ho Ren Hua, CEO of Thai Wah Group.

With two government overthrows in the span of six years (2006 and 2014), Thailand has indeed been a politically volatile country, a factor that may scare off short term investors. However, as Thai companies and CEOs continue to successfully find opportunities despite government issues, it continues to makes for a interesting economic landscape.

A version of this appeared in BBC News on June 28. Read the full article here.