Sunday, August 27, 2017
Mongolian Stock Market up 25% in 2017 and 50% since last November
The chart above is the Mongolian Stock Exchange Top 20 Index. As I stated in the title the stockmarket in Mongolia is up 25% ytd and almost 50% since last November. Of course no one is really paying attention as most people cannot find Mongolia on a map.
I am paying attention because this is another market, like Ukraine, that is going from bad news to a little less bad news. When these small frontier and emerging markets turn they can go up hundreds of percent.
We are currently seeing globalized synchronized growth with most countries in an expansionary mode. Yes I know it is all central bank money printing causing this and it will eventually end in tears.
However, commodities are rallying and copper and hard coking coal are two of Mongolia's exports. Both of these are seeing increased pricing and demand from China which consumes most of Mongolia's commodity exports.
I already have a brokerage account in Mongolia but I am in the process of transferring over to another broker. I am going to use BDSEC which is the largest broker in the country.