It is not possible to take a fresh look at the financial markets without knowing what a financial market is and how financial markets operate. A financial market refers to a marketplace where buyers and sellers trade in assets and financial instruments like stocks, bonds and equities. Buyers and sellers can also trade in currencies and derivatives using the broad platform offered by financial markets. The connection between a strong economy and a vibrant financial market is simply this. Growth in other sectors of the economy leads to a corresponding growth in the financial market.

Many countries of the world have relatively small financial markets because the economies of these countries are not well developed. On the other hand, some of the worlds largest economies have deep financial markets. Examples of countries with flourishing financial markets are the US, Japan, the UK and Germany. In this article, the aim is to look at some of the emerging economies of the world and discuss why it makes sense for investors to target some aspects of the financial markets in these countries.

Some years ago, an economist called Jim ONeill came up with the concept of BRICS. This abbreviation stands for Brazil, Russia, Indonesia, China and South Africa. According to ONeill, these countries were the emerging economies of that period and it was predicted that the financial markets in these places will experience substantial growth. The BRICS countries at the time were just developing or newly industrialized nations. It is fair to state that Jim ONeill was right on target because most of his predictions have proved correct. Today, (2014) the BRICS countries have a combined GDP of US$16.039 trillion and this figure is 20% of the worlds total GDP.  These countries also make up 40% of the worlds population and together, they have managed to put away a respectable US$4 trillion in combined foreign reserves. This had a positive impact on the financial markets in these countries and, as expected, stock market investors in the BRICS countries made a lot of money from capital appreciation, bonus shares and dividends.

The BRICS countries still remain the preferred investment destination for many investors but there appears to be an even better option in horizon. According to Jim ONeill, the economies of the MINT countries are expected to zoom very soon. These countries are Mexico, Indonesia, Nigeria and Turkey. Mexico is just next door to the US and its economy is booming. Indonesia has the largest economy in South East Asia and an estimated population of 237.6 million people. That is a huge market for goods and services right there. The other two countries in the MINT group are Nigeria and Turkey and both countries are growing very fast.

It is not as if investors are advised to avoid the developed economies of Europe and North America. The point is that a fresh look at the financial markets has revealed that the BRICS and MINT countries have great prospects for the shrewd investor. Economic growth leads to a more vibrant financial market and this translates to both short-term and long-term profit. Finally, this writer recommends the stock markets of Brazil and Nigeria as the perfect investment destinations right now.