Investing in emerging markets?
Hey monkeys
For those with investment horizons >7 yrs, would investing in emerging market equity indexes be a good bet? These countries, from pure demographics alone will be exploding over the next 15 ish years , so for those new to the industry and looking to lock up their $$$ for some time doesn't this make sense?
Potential upside seems to outweigh liquidity risk, currency, political risk etc. Thoughts?
Errr, EM right now is volatile as fuck. Are you trying to just buy and hold or will actively manage your positions?
Buy and hold for min 7 yrs, slowly add to position
Check out Indonesia, there's an ETF IDX which tracks their economy. Solid growth driven by internal consumption. Conservative banking sector
Haha, I had a similar mentality, wanted some more exposure to EM in my portfolio. I ended up snapping up a mutual fund and Citigroup.
In my opinion, Citi is one of the best vehicles for those looking for exposure to EM. Citi's profits are increasingly being driven by growth in Asia, which accounts for over 40% of their profits. The middle class in Asia is growing fast and will result in much higher consumption in the coming years. Citi is the well poised to exploit this trend as the largest global consumer bank in Asia.
Not to mention Citi is severely undervalued. Trading at half book value yet they are rapidly unwinding their riskiest assets.
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