The recent stock market correction, mostly triggered by both the perception and reality of a burgeoning credit crunch in the real estate sector, has driven most media coverage regarding the robustness (or lack there-of) of the overall investment markets. For managers of emerging and middle market companies, the questions that naturally are a) is this credit crunch real and will it continue and b) how will it affect their access to capital -- both debt and equity?
Here at Growthink we do not portend to be market prognosticators. We do strongly believe, however, that long-term emerging and middle market investment fundamentals have never been stronger. These fundamentals include:
So while without question if this credit crunch continues and worsens (both in reality and perception) it will trickle down to all investment sectors. Overall investment fundamentals remain strong, however, and will continue to provide much opportunity for entrepreneurs and managers with well-thought out investment and growth plans and objectives.