The Little Book of Emerging Markets: How To Make Money in the World's Fastest Growing Markets (Little Books. Big Profits)
The information you need to invest in emerging markets, in one Little Book
The world's economies are in a state of flux. The traditional dominance of the G7 countries is being challenged by emerging market nations like Brazil and India, and while investment opportunities in these countries abound, the risks can be extremely high. In this Little Book, Mark Mobius, an internationally-renowned expert on emerging market funds, explains the ins and outs of emerging market investment, providing practical guidance on picking industries and companies likely to win, and explaining why policies and regulations matter as much as balance sheets, how to recognize global contenders, techniques for managing risk, and how to get out at the right time.
The emerging markets are expected to be a key driver of future global economic growth, and with The Little Book of Emerging Markets in hand, you have everything you need to take full advantage of these incredible opportunities.
* Explains how to pick the industries and companies mostly likely to boom, why policies and regulation are key to making intelligent investment decisions, how to recognize genuine opportunities, and much more
* Includes invaluable techniques for managing your risk
* Shows you how to get your money in and out of emerging markets without being burned
The Little Book of Emerging Markets is the perfect little guide to the world's most exciting investment opportunities.
Seventeen Overcoming Irrational Market Panic: Learning to Be Objective Field Note: Brazil 181 191 Chapter Eighteen ftoc.indd x The World Belongs to Optimists: Golden Investment Attributes and Rules 197 Acknowledgments 205 About the Author 207 20/03/12 7:53 AM Introduction ONE OF THE MOST frequent questions I get asked is: “When’s the best time to invest?” The answer is: The best time to invest is when you have money. The reality is that market timing is impossible, and since
investors tend to pay more attention to high market expectations and are more willing to pay higher and sometimes unreasonable current prices. (Here I must emphasize “current” since a price may seem high now but with high earnings growth that price may appear very cheap in the future.) In cases where expectations fail, value investors have less to lose as the stock has already c05.indd 51 20/03/12 7:48 AM  THE LITTLE BOOK OF E M E R G I N G M A R K E TS been trading at low prices.
of market lows and highs over time, you would see that with few exceptions, regional boundaries still very much define emerging markets. In an age when jet travel and electronic commerce would seem to dominate an increasingly global economy, it’s surprising how strong local and regional boundaries are. Regional economies in the less industrialized, less c07.indd 80 20/03/12 7:48 AM THE REALITY OF RISK [ 81 ] wired parts of the world are obviously knit together by increasingly advanced
to reduce the list for investors. Many countries were excluded as initial investment possibilities because of a number of barriers, such as foreign investment restrictions, taxation, and the lack of stock markets. Gradually more and more countries finally abandoned the socialist/ communist economic model and came to realize that a market economy would yield faster growth. This resulted c01.indd 5 20/03/12 7:47 AM  THE LITTLE BOOK OF E M E R G I N G M A R K E TS in both bond and stock
fall. 3. Buy the stock, or currency, back at a lower price (if the price does fall). 4. Pocket the difference. The “shorts”—which is short for short sellers—are taking the risk and making a bet that the price of whatever commodity they’re selling will fall by a given amount within a given period of time. Where they can get caught is if the price of that commodity, instead of falling, goes up—at which point they’re forced to come up with the difference. So it’s by no means a win-win proposition.