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Investing in Emerging Markets

Discussion in 'Investing Strategies' started by Simon Hampel, 15th Aug, 2008.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

    9th Jun, 2005
    Sydney, Australia
    An interesting blog post from Tim Hewson (Senior Manager - Investments and Managed Funds at RaboPlus), discussing some of the issues you may face when looking to diversify into emerging markets.

    Specifically, he has a list of things to consider when contemplating an investment in emerging market economies, which I will summarise here:

    • Tax Treatment
    • Price relativity (ie how expensive a market is)
    • Volatility
    • Avoid the temptation to over-allocate
    • Microeconomic factors
    • Social trends
    • Economic Management

    You should read Tim's full post where he explains the issues with each of these items. Read more at: Exposing yourself to emerging markets | Confident Investor
  2. kinaev

    kinaev Dmitriy Kinaev

    30th Aug, 2008
    Interesting Article

    Indeed, Tim Hewson mentions an array of things to be taken into consideration. However, just like with any other investment it pays to specialise your knowledge in a certain area. For example mining. Thus, when investing in overseas markets - especially in EMEs, it is vital that you have a good understanding of the industry and its drivers on a macro scale, and within that specific market.
  3. try anything once

    try anything once Well-Known Member

    8th Oct, 2008
    I am thinking of adding some exposure to emerging markets and BRIC countries in particular.

    The vehicle I am thinking of using is the ishares IBK or IEM (or maybe a bit of both).

    Given the mention of tax implications in the article referenced above, does anyone have expereince with the above two ETFs and any particular tax traps I should know about.

    thank you