Emerging markets have been one the best places for market participants to find investment opportunities in equities, especially in the retail and banking sectors. In particular in South Africa (EZA, quote), firms in these industries have historically been bullet proof; however, recently, shares in these firms have been adversely affected by social unrest in the country.
With the recent passage of legislation to open Myanmar to foreign investment, McDonald’s (MCD, quote) restaurants could soon be dispensing Coca-Cola (KO, quote) throughout the country. Although the new law will not be enacted until it’s signed by President Thein Sein, this is a massive step in the right direction for a country that was ostensibly socialist under its military junta.
Stock exchanges in both developed and emerging markets moved higher Friday thanks to U.S. Federal Reserve Chairman Ben Bernanke’s speech at Jackson Hole, Wyoming.
The “Baltic Tiger” label still applies to the three nations that make up the Baltic states. Despite suffering in the global financial crisis, Estonia, Latvia and Lithuania are growing again.
It sure feels good when reported results, from either a company or a country, meet or exceed expectations. With much of the world struggling to stimulate growth, such positive news is rare. But the Malaysian economy has given emerging market investors something to smile about.
Investors have two more options today when looking for exchange-traded funds with emerging markets exposure. Emerging Global Advisors has launched the EGShares Beyond BRICs (BBRC, quote) and the EGShares Emerging Domestic Demand (EMDD, quote) as part of their product line, including 19 other theme-specific emerging markets funds.
Jim O’Neill of Goldman Sachs is well known as the man who coined the acronym BRIC. He has now created another acronym gaining traction thanks to a fund he launched last year: MIST, which stands for Mexico, Indonesia, South Korea and Turkey.
It is a good exercise to compare and contrast the primary categories of emerging market investing: emerging markets and the sub-category, or maybe more appropriately described sibling: frontier markets.