Seven months ago, global investment bankers anointed Egypt as the "next big thing" in the world of emerging-markets investing – naming it as one of the exciting "CIVETS" economies that every investor had to consider.
But Money Morning's Martin Hutchinson had his doubts – and said so in a special investment report. Turns out that Hutchinson, a former global merchant banker and author, made a perfect call.
The political unrest that broke out in Egypt two weeks ago highlighted that Middle East country's vulnerabilities, and called to question that country's future as a viable destination for investment capital. Violent protests erupted because of poverty, deprivation and the bleak opportunity outlook – and quickly outstripped the Egyptian government's ability to halt the demonstrations.
Egypt hit the headlines again yesterday (Tuesday) when Hosni Mubarak, the country's 82-year-old president, announced that he would not run in the upcoming presidential elections, a decision that will end his three-decade authoritarian reign.
"I have spent enough time serving Egypt," Mubarak told the nation in a televised address.
Given the news that Mubarak won't run again, what's next for Egypt? With a new regime in place, will there be change? Will Egypt become one of the "good" CIVET nations? Or will it be more of the same, meaning investors should steer clear?
Check out Money Morning tomorrow (Thursday), when Hutchinson outlines his outlook for Egypt.
News and Related Story Links:
- Money Morning Investment Research:
The CIVETS: Windfall Wealth From the 'New' BRIC Economies. - MarketWatch.com:
Egypt's Mubarak will not run for re-election.