Posts Tagged Emerging Market Equities

Near Zero returns on Treasuries and continued government fiscal stimulus (because of worry about a double dip recession and high unemployment) are fueling speculation that the run will keep going. I wouldn’t be surprised but don’t count on it. Also, remember, investors….we are in this for the long run. Many of our emerging market hallmarks stocks are trading 100 week highs.
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Equity Advisors

http://www.reuters.com/article/globalMarketsNews/idUSTRE5A53O020091106

The 5 Year Plan.  Remember, this is a return that is “capital appreciation” and we assess that it is realistic even though our clients are not immediately “fully invested”.  In other words, we are “cost averaging” into equities which a more conservative approach.  Five years is a long time for many investors to plan but that’s what it takes to make our approach work.

"We Will Turn the Five Year Plan into a Four Year One" (1930)

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Wealth Advisory

Our analysts just reviewed the mornings market research and BNP thinks the emerging market rally will continue.
Emerging market stocks may add to their gains this year as earnings growth returns,  an that improving corporate earnings will overtake renewed “appetite” for risk and stronger -nation currencies as the main driver of the rally.  Domestic demand in  China, Brazil and India. is again the hot subject.   CR Capital advises our clients to be cautiously optimistic but a lot of market watchers are outright optimistic about the next big earnings cycle in emerging markets.

www.crinvestmentadvisors.com
Wealth Management

The global crisis was effectively a brief interruption (and an excellent buying opportunity) for the emerging market hallmark equities that our clients purchase. CR Capital is still a loud supporter of the long term growth in these markets. However, the volatility (both up and down) is probably here to stay and that means that we really must pay attention to the valuations as signals to buy.

This approach will work but, friends, it means we have to stomach some volatility.

But Sometimes It's a Bit Bruising

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Equity Investment Advisors

I feel like a pied piper. Everyday the press repeats what I’ve been saying to clients for years and more loudly lately. As the FT reports today:
For many people the future of investing can be summed up in two words: emerging markets.

This view has been strengthened by the experience of the last two years, when most of the financial problems surrounding subprime, toxic assets, stricken banks and overleverage were features of developed markets, rather than emerging ones.

Moreover, it has been an emerging market – China – that has led the world back from recession, rather than the US, the world’s biggest economy, which continues to struggle.

In other words, this is a crisis that may prove the making of the emerging markets, because during previous bouts of global financial turbulence they have often been harder hit than their developed market counterparts. This time, emerging markets rebounded more quickly, and emerging market assets, particularly equities, have staged far stronger recoveries.

The improvement has been so great that some commentators even believe that the term “emerging markets” is obsolete.

Marko Dimitrijevic, chief investment officer at Everest Capital, a Miami-based hedge fund manager, is one of them. “You’re basically buying something with similar risk, yet has better growth characteristics.”

"Follow Me to Emerging"

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Wealth Management

http://www.ft.com/cms/s/0/a03c8b2c-b1ca-11de-a271-00144feab49a.html

I still refer to the equities that we recommend as “Emerging Market” Hallmarks because, technically, companies headquartered in Brazil, China, India, Russia and dozens of other countries are still classified as “emerging” and “frontier” markets. I found the arguments from the FT’s Marko Demitirjev right on. Take a look at his article below. He has come to the same conclusion as CR Capital Advisors, “The end of emerging markets is here. Investors that don’t catch on to this reality risk being left behind.”  Growth and Performance over the long run are in the so called “Emerging Markets”.
http://www.crinvestmentadvisors.com
http://www.ft.com/cms/s/0/82edf7c0-ac3b-11de-950b-00144feabdc0.html
Family Office

The quick rebound of Emerging Markets and the fact that they are pulling out of the recession as fast or faster is compelling. Shares in India, Russia and China rose, the yen fell and a measure of European companies’ creditworthiness improved to the highest level since the collapse of Lehman Brothers Holdings Inc. a year ago.

The point is that “Emerging Market” Equities aren’t necessarily riskier than rich country companies, and the growth prospects are better.
The “Emerging” tag which implies risk and danger is every day more meaningless.

Wealth Management
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