Seven Things to Consider Before Investing in Emerging Markets (AllianceBernstein)
The AllianceBernstein Blog on Investing has come up with and gone into considerable detail about the following seven factors to consider before investing in emerging markets:
- Earnings growth, finally.
- Monitor global events, but don’t become paralyzed.
- The easy EM beta trade is likely behind us.
- Volatility is a bigger hurdle.
- Good news: alpha potential remains high.
- Prepare for the end of the “safety trade.”
- Diversify your exposure with multi-asset strategies and smaller markets.
One of the tips included the following comment about what are now considered to be frontier markets:
Investors should also consider adding exposure to smaller developing-world markets, many of which are growing quickly, yet remain less correlated than the BRICs and are often riper for stock-picking because of greater information inefficiencies. Ten years from now, we expect markets such as Vietnam, Nigeria, Colombia and Qatar to become more significant constituents in global portfolios.
In addition, the blog post had the following rather interesting graphic:
To read the whole blog post, Seven Things to Consider About Emerging Markets Now, go to the AllianceBernstein Blog on Investing.
- Rapid Aging in Emerging Markets will Impact Consumer Spending (AllianceBernstein)
- Job Insecurity Hits the Middle Class / Older Workers in Emerging Markets (AllianceBernstein)
- BRICS May Set Up Emerging Markets Ratings Agency (Economic Times)
- Investing in India ADRs / Indian Stocks List
- Mark Mobius’ Contrarian Case for Investing in Brazil (Mobius Blog)
- MSCI Islamic Total Return Index vs. MSCI Emerging Markets Total Return Index (Mobius Blog)
- 8 of 10 Fastest Growing Markets are Frontier Markets (Mobius Blog)
- Indices for Measuring Emerging Market Political Instability (Enterprising Investor)
- Leave Emerging Markets to the Fund Manager Pros (Investors Chronicle)
- Three Reasons Why Investors Should Buy Frontier Market Stocks (The BlackRock Blog)