Investing in Emerging Markets

Discussion in 'Share Investing Strategies, Theories & Education' started by Simon Hampel, 15th Aug, 2008.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    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
     
    Simon Hampel, 15th Aug, 2008
    #1
  2. kinaev

    kinaev Dmitriy Kinaev

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    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.
     
    kinaev, 30th Aug, 2008
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  3. try anything once

    try anything once Well-Known Member

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    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
     
    try anything once, 2nd Nov, 2008
    #3