• Home
  • About
    • Ethics
    • Contact Us
  • EM Investing Tips
  • ADR Lists
    • Africa ADR Lists
    • Central Asia ADR Lists
    • East Asian ADR Lists
    • Middle East ADR Lists
    • South Asia ADR Lists
    • Southeast Asia ADR Lists
    • Eastern Europe ADR Lists
    • Emerging Europe ADR Lists
    • Caribbean ADR Lists
    • Central America ADR Lists
    • South America ADR Lists
  • ETF Lists
    • Africa ETF Lists
    • Asia ETF Lists
    • Asia Pacific ETF Lists
    • Bond ETF Lists
    • BRIC ETF Lists
    • Central Asia ETF Lists
    • Currency ETF Lists
    • East Asia ETF Lists
    • Eastern Europe ETF Lists
    • Emerging Europe ETF Lists
    • Equity (Sector) ETF Lists
    • Leveraged (Bull/Bear) ETF Lists
    • Latin America ETF Lists
    • Middle East ETF Lists
    • Multiple Region ETF Lists
    • South Asia ETF Lists
    • Southeast Asia ETF Lists
  • Closed-End Fund Lists
    • Asia Pacific Closed-End Fund Lists
    • East Asia Closed-End Fund Lists
    • China Closed-End Fund Lists
    • Southeast Asia Closed-End Fund Lists
    • India Closed-End Fund Lists
    • Middle East Closed-End Fund Lists
    • Eastern Europe Closed-End Fund Lists
    • Russia Closed-End Fund Lists
    • Emerging Market Equity & Fixed Income Closed-End Fund Lists (Multiple Regions / Countries)
    • Emerging Market Equity Closed-End Fund Lists (Multiple Regions / Countries)
    • Emerging Market Fixed Income Closed-End Fund Lists (Multiple Regions / Countries)
    • Latin America Closed-End Fund Lists (Region Wide)
    • Caribbean Closed-End Fund Lists
    • Mexico Closed-End Fund Lists
    • South America Closed-End Fund Lists
  • Fund News
  • Hot Zone
    • Brazil ADRs / Brazilian Stocks List
    • Brazil ETF List
    • Brazil Investing News
    • China ETF List
    • China Investing News
    • Fragile Five Investing News
    • Macau Investing News
    • Russia ADRs / Russian Stocks List
    • Russia ETF List
    • Russia Investing News
    • Taiwan ADRs / Taiwanese Stocks List
    • Ukraine ADR List
  • Resources
    • Global Stock Performance (Interactive Map)
    • Country Performance (US Listed Stocks Only)
    • Global P/E Ratios (Interactive Map)
    • Global Dividend Yields (Interactive Map)
    • Election Calendar
    • Emerging Market Earnings Calendar
    • Earnings Calendar (Interactive Map)
    • Emerging Markets Economic Calendar
    • Global Bank Holiday Calendar
    • IPO Calendar
    • IPO Recent Filings
    • ETF Launches
    • ETF Closures/Liquidations
    • High Short Interest Stocks
    • Fitch Rating Actions
    • Moody’s Rating Actions
    • Standard & Poor’s Rating Actions
  • Substack Newsletter
  • Support This Site
Emerging Market Skeptic

Investing in Emerging Market Stocks, ADRs, ETFs & Funds + Reality

Emerging Market Links + The Week Ahead (September 19, 2022)

Posted September 19, 2022 8:00 pm by EMS Editor Comments

Commodity demand and/or US-China tensions are said to be helping markets like Brazil, India and Indonesia while sinking shipping demand to and from China bodes poorly for the global economy.

Chinese manufacturers are also setting up shop in Mexico while Asian countries like Vietnam and Thailand continue to take up a large chunk of the manufacturing investment that would have otherwise gone to China.

Finally, non-UK investors are probably not familiar with Terry Smith who will be closing his Fundsmith Emerging Market Equity trust. As with many an emerging market investor before him, he had made some wrong bets and misunderstood EM vs. developed market investing.

Subscribe Now Via Substack


Suggested Reading

$ = behind a paywall

Forget China. These 3 Emerging Markets Are Better Bets. (Barron’s)

  • Strong demand for oil and metals like copper and nickel is helping commodity producers, including Indonesia. Emerging market central bankers, such as those in Brazil, have been earlier and more proactive in fighting inflation than the Fed. Structural trends—including tensions between the U.S. and China and the war in Ukraine—benefit countries such as India and Indonesia.

Shipping’s China syndrome: Demand sinks across multiple cargo markets (FreightWaves)

  • “There’s a saying that everything that moves out of China in containers has to come into China as raw materials,” noted Oeyvind Lindeman, chief commercial officer of Navigator Gas (NYSE: NVGS), on his company’s latest conference call.
  • The glass-half-empty view is that pullbacks in shipping demand are bellwethers of more severe economic problems to come. The glass-half-full view is that declines are temporary. A rebound of Chinese demand for iron ore, oil and gas will eventually boost commodity shipping rates.

China, IMF bailouts for poorer states ease bearish sentiment towards emerging markets (SCMP)

  • The IMF is finalising loans to countries like Pakistan and Sri Lanka, while China is offering debt relief to 17 African countries.
  • Their distress sagas are being recast as turnaround stories, enabling investors to dip a cautious toe back into their assets.

Star stockpicker to close emerging markets fund: Terry Smith gives up on struggling £325m trust (Daily Mail)

  • FEET owned few companies exposed to or based in China but as the country is the world’s second-largest economy, avoiding it has weighed on performance.

What went wrong for Terry Smith’s trust? (FT Adviser)

  • The exposure to India, a commodity importer, has proved unwise, at a time when commodity prices have risen stoutly and while higher commodity prices would be expected to benefit many emerging markets – the Fundsmith Emerging Market Equity trust has a 5 per cent exposure there, leaving it the wrong side of market movements this year.
  • His investment style is to invest in established, relatively mature growth companies, but one of the challenges associated with emerging markets is that there are comparatively few such businesses, as by definition, economies at an earlier stage of economic development have fewer mature companies. 

Emerging markets aren’t for the faint of heart. Here’s what advisors should know (FinancialPlaning)

  • International markets have more retail stockholders. “You’re not going to earn alpha from anyone, right? Not consistently,” Rayliant Global Advisors Founder Jason Hsu said. “In retail markets, especially the Asian retail markets, there’s retail gambling. In China, it’s 85% retail. In Taiwan and South Korea, it’s 50% to 60% retail. So you kind of have a willing reservoir of losers on the other side.”
  • Life + Liberty Indexes Founder Perth Tolle brought up BlackRock CEO Larry Fink’s 2011 Bloomberg interview, in which he said that, “Markets don’t like uncertainty. Markets like, actually, totalitarian governments where you have an understanding of what’s out there.”

Mercado Libre CFO talks e-commerce markets, fintech services, crypto, outlook (Yahoo! Finance)

NOTE: Online retailer Mercado Libre (NASDAQ: MELI) services 18 countries across Latin America and has recently expanded into banking services and cryptocurrency.

  • So Mexico has been extremely strong for quite some time now, very competitive market. We continue to be market leaders. Brazil is still the largest market. It represents around 60% of our business, still growing quite nicely. And then a lot of opportunity in the Andean markets, so Colombia, Chile, Peru. We entered those markets somewhat later and could potentially be big drivers of growth when we look at the next 5 to 10 years.

Chinese Manufacturers Get Around US Tariffs With Some Help From Mexico (Bloomberg)

  • Although the cost of materials and labor is generally higher in Mexico than in China, the gap has been shrinking over the years, with wages in China growing at a more rapid clip.
  • Still, countries in Asia such as Vietnam and Thailand appear to be taking up a large chunk of manufacturing investment that might have once gone to China.
  • Chinese businesses are less likely to be spooked by AMLO’s habit of railing against foreign companies, given that many have experience operating in emerging markets.
  • Yet, unlike China, Mexico doesn’t boast extensive networks of suppliers across a large number of industries.

Cash-Strapped Argentina Goes All or Nothing on New Economy Chief (Bloomberg via Yahoo!)

  • If Massa, Argentina’s fifth economy minister in four years, can pull off this difficult balancing act, he’ll be a presidential contender in the 2023 election. But if the nation suffers a full-blown crisis with galloping inflation, his political future will be hard to salvage, and the government will struggle to retain power.

Generac Holdings Inc. (Website & Finviz Chart)

NOTE: An interesting stock pick idea:

If you’re Generac $GNRC you are shipping the entire portable generator inventory to Poland and waiting for the gubment check.

— JackFin (@JackFin18) September 11, 2022

Earnings Calendar

Note: Investing.com has a full calendar for most global stock exchanges BUT you may need an Investing.com account, then hit “Filter,” and select the countries you wish to see company earnings from. Otherwise, purple (below) are upcoming earnings for US listed international stocks (Finviz.com):

World Map

Economic Calendar

Click here for the full weekly calendar from Investing.com containing frontier and emerging market economic events or releases (my filter excludes USA, Canada, EU, Australia & NZ).


Election Calendar

Frontier and emerging market highlights (from IFES’s Election Guide calendar):

  • Brazil President Oct 2, 2022 (d) Confirmed Oct 30, 2022
  • Brazil Brazilian Federal Senate Oct 2, 2022 (t) Confirmed Oct 7, 2018
  • Brazil Brazilian Chamber of Deputies Oct 2, 2022 (d) Confirmed Oct 7, 2018
  • Bosnia and Herzegovina Bosnia and Herzegovina House of Representatives Oct 2, 2022 (d)
  • Bosnia and Herzegovina Chairman of the Presidency Oct 2, 2022 (d)
  • Bahrain Bahraini Council of Representatives Nov 30, 2022 (t) Date not confirmed Dec 1, 2018
  • Tunisia Tunisian Assembly of People’s Representatives Dec 17, 2022 (d) Confirmed Oct 6, 2019

Check out: Thoughts for Investors: Bongbong Marcos Wins the 2022 Philippines Elections in a Landslide


IPO Calendar/Pipeline

Frontier and emerging market highlights from IPOScoop.com and Investing.com (NOTE: For the latter, you need to go to Filter and “Select All” countries to see IPOs on non-USA exchanges):

Lichen China Ltd.LICN $6.3M, $4.00-4.00, $25.0 mil, 9/19/2022 Week of

  • We are a leading financial and taxation service provider in China in terms of revenue, according to the industry report of Frost & Sullivan. (Incorporated in the Cayman Islands)We have operated as a dedicated financial and taxation solution service specialist in China for over 17 years. We focus on providing (i) financial and taxation solution services; (ii) education support services; and (iii) software and maintenance services in the People’s Republic of China (PRC) under the “Lichen” brand. With over 17 years of operation history, we have gained substantial experience and established a solid reputation with our proven track record in the PRC.We launched a new business line of software and maintenance services in 2019 to expand our software product offerings to enterprise customers, universities, colleges and educational institutes and have started to generate revenue from provision of such services since then.From 2012 to 2020, we have been recognized as one of the Top 50 Providers of Management Consulting Services in China for eight consecutive years by the China Enterprise Confederation Management Advisory Committee.

Global Star Acquisition Inc.GLSTU, 8.0M Shares, $10.00-10.00, $80.0 mil, 9/20/2022 Tuesday

  • We intend to focus our search for target companies on FinTech and PropTech businesses in the Nordic region and the Asia Pacific (APAC) region, especially the South Pacific.  Anthony Ang, our CEO and chairman, is the chairman of R. Vantage Pte. Ltd. (Singapore), a crowdfunded real estate investment platform since November 2021, and as chairman of the Singapore Digital Exchange Pte. Ltd., a digital exchange of cryptocurrency and digital assets in Singapore, since December 2021.Shan Cui is our CFO. Since 2010, Ms. Cui has served as a managing director of Capital First International, which provides consulting services to SPAC, private equity, venture capital and growth companies.

ParaZero Technologies Ltd.PRZO, 3.0M, $5.20-7.20, $18.9 mil, 9/30/2022 Friday

  • We are an aerospace company that is focused on drone safety systems and engaged in the business of designing, developing, and providing what we believe are best-in-class autonomous parachute safety systems for commercial drones, also known as unmanned aerial systems or UAS. (Incorporated in Israel)……We have a global distribution footprint and have forged partnerships all around the world, including India, South Korea, the United States, Latin America and Europe. We sell our drone safety systems as off-the-shelf solutions, as well as perform integrations with original equipment manufacturers, or OEMs, offering customized, bespoke safety solutions for a large variety of aerial platforms.Our technology has been sold to and used by some of the world’s top companies and organizations, including drone companies such as LIFT Aircraft, Airobotics, SpeedBird Aero and Doosan Corporation, and other leading brandss such as CNN, The New York Times, Hensel Phelps, Verizon Media (Skyward), Fox Television, the Chicago Police Department and Fortis Construction.

ETF Launches

Climate change and ESG are clearly the latest flavours of the month for most new ETFs. Nevertheless, here are some new frontier and emerging market focused ETFs:

  • KraneShares Launches S&P Pan Asia Dividend Aristocrats ETF on NYSE (Ticker: KDIV)KDIV tracks the S&P Pan Asia Dividend Aristocrats Index, which provides exposure to companies in China, Japan, Australia, and other Asian countries that have paid and increased their dividends over a sustained period. Studies by S&P Dow Jones Indices have shown that over the long-term, dividend-paying companies have outperformed their corresponding broad market indexes on a risk-adjusted basis1. KDIV gives investors access to the S&P Dividend Aristocrats methodology applied to the Pan Asia region, one of the fastest-growing areas in the world.
  • 7/14/2022 – Matthews China Active ETF MCH – Active, equity, China
  • 7/14/2022 – Matthews Emerging Markets Equity Active ETF MEM – Active, equity, emerging markets
  • 7/14/2022 – Matthews Asia Innovators Active ETF MINV – Active, equity, Asia
  • 6/30/2022 – BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF XEMD – Passive, fixed income, emerging markets
  • 5/2/2022 – AXS Short CSI China Internet ETF SWEB – Active, inverse, thematic
  • 4/27/2022 – Dimensional Emerging Markets High Profitability ETF DEHP – Active, equity, emerging markets
  • 4/27/2022 – Dimensional Emerging Markets Core Equity 2 ETF DFEM – Active, equity, emerging markets
  • 4/27/2022 – Dimensional Emerging Markets Value ETF DFEV – Active, equity, emerging markets
  • 4/27/2022 – iShares Emergent Food and AgTech Multisector ETF IVEG – Passive, equity, thematic [Mostly developed markets]
  • 4/21/2022 – FlexShares ESG & Climate Emerging Markets Core Index Fund FEEM – Passive, equity, ESG
  • 4/6/2022 – India Internet & Ecommerce ETF INQQ – Passive, equity, thematic
  • 2/17/2022 – VanEck Digital India ETF DGIN – Passive, India market, thematic
  • 2/17/2022 – Goldman Sachs Access Emerging Markets USD Bond ETF GEMD – Passive, fixed income, emerging markets
  • 1/27/2022 – iShares MSCI China Multisector Tech ETF TCHI – Passive, China, technology
  • 1/11/2022 – Simplify Emerging Markets PLUS Downside Convexity ETF EMGD – Active, equity, options strategy
  • 1/11/2022 – SPDR Bloomberg SASB Emerging Markets ESG Select ETF REMG – Passive, equity, ESG

ETF Closures/Liquidations

Frontier and emerging market highlights:

  • 8/22/2022 – iShares MSCI Argentina and Global Exposure ETF AGT
  • 8/22/2022 – iShares MSCI Colombia ETFI COL
  • 6/10/2022 – Infusive Compounding Global Equities ETF JOYY
  • 5/3/2022 – ProShares Short Term USD Emerging Markets Bond ETF EMSH
  • 4/7/2022 – DeltaShares S&P EM 100 & Managed Risk ETF DMRE
  • 3/11/2022 – Direxion Daily Russia Bull 2X Shares RUSL
  • 1/27/2022 – Legg Mason Global Infrastructure ETF INFR
  • 1/14/2022 – Direxion Daily Latin America Bull 2X Shares LBJ

Check out our emerging market ETF lists, ADR lists (updated) and closed-end fund (updated) lists (also see our site map + list update status as some ETF lists are still being updated as of Summer 2022).

I have changed the front page of www.emergingmarketskeptic.com to mainly consist of links to other emerging market newspapers, investment firms, newsletters, blogs, podcasts and other helpful emerging market investing resources. The top menu includes links to other resources as well as a link to a general EM investing tips / advice feed e.g. links to specific and useful articles for EM investors.

Disclaimer: EmergingMarketSkeptic.Substack.com and EmergingMarketSkeptic.com provides useful information that should not constitute investment advice or a recommendation to invest. In addition, your use of any content is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the content.

Emerging Market Links + The Week Ahead (September 19, 2022) was also published on our Substack.


Subscribe now


Share

Share Emerging Market Skeptic

Leave a comment


Emerging Markets Investing Tips + Advice

Emerging Market Skeptic (Website)

Website List Updates + Site Map

Stocktwits @EmergingMarketSkptc

Twitter @EmergingMrktSkp

Similar Posts:

  • Emerging Market Links + The Week Ahead (September 5, 2022)
  • Emerging Market Links + The Week Ahead (October 3, 2022)
  • Emerging Market Links + The Week Ahead (May 30, 2022)
  • Emerging Market Links + The Week Ahead (June 6, 2022)
  • Emerging Market Links + The Week Ahead (September 12, 2022)
  • Emerging Market Links + The Week Ahead (November 21, 2022)
  • Emerging Market Links + The Week Ahead (October 10, 2022)
  • Emerging Market Links + The Week Ahead (May 16, 2022)
  • Emerging Market Links + The Week Ahead (August 29, 2022)
  • Emerging Market Links + The Week Ahead (August 1, 2022)
  • Emerging Market Links + The Week Ahead (June 27, 2022)
  • Emerging Market Links + The Week Ahead (August 22, 2022)
  • Emerging Market Financial Services ETF List
  • Emerging Market Links + The Week Ahead (November 14, 2022)
  • Emerging Market Links + The Week Ahead (January 23, 2023)

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

← Emerging Market Skeptic home

Support This Site

Tags

Africa Argentina Asia Bangladesh Brazil Cambodia Chile China Colombia East Asia Eastern Europe Egypt Greece Hong Kong India Indonesia Kazakhstan Kenya Latin America Macau Malaysia Mexico Middle East Myanmar Nigeria Pakistan Peru Philippines Poland Qatar Russia Saudi Arabia SE Asia Singapore South Africa South Asia South Korea Sri Lanka Taiwan Thailand Turkey Ukraine United Arab Emirates (UAE) Venezuela Vietnam

Category Specific RSS

  • feedAfrica (153)
  • feedBonds (74)
  • feedBooks (4)
  • feedBrands (26)
  • feedChina (549)
  • feedClosed End Funds (19)
  • feedCommodities (80)
  • feedCompanies (30)
  • feedCorruption (16)
  • feedCurrencies (72)
  • feedEastern Europe (141)
  • feedEMS Analysis (21)
  • feedETFs (43)
  • feedEurasia / Central Asia (31)
  • feedFeatured (4)
  • feedFrontier / Emerging Market News (866)
  • feedFund Manager News & Research (441)
  • feedFutures / Options (1)
  • feedIndia (152)
  • feedInfrastructure (16)
  • feedInteresting News (36)
  • feedInvesting Tips (245)
  • feedLatin America (246)
  • feedMiddle East (108)
  • feedMutual Funds (38)
  • feedNewsletter (47)
  • feedProducts (1)
  • feedReal Estate (36)
  • feedRussia (130)
  • feedSoutheast Asia (237)
  • feedStartups (49)
  • feedStocks (175)
  • feedTabloid Fun! (11)
  • feedTechnology (150)
  • feedUncategorized (2)

Archives



Return To Top
2013-2023 EmergingMarketSkeptic.com
Visit Us On TwitterVisit Us On FacebookVisit Us On YoutubeCheck Our FeedVisit Us On Instagram