| Did you know that the Russian stock market | | | | spell long-term bad news for emerging market |
| grew by a staggering 89.56% over the last year? | | | | stocks. This may have been true in the past, but |
| Or that the Egyptian stock market grew by a no | | | | is much less relevant nowadays. Many of the |
| less impressive 57.98% a year over the last five | | | | hotter markets, which suffered bad falls last May, |
| years? Performance records in the emerging | | | | have already bounced back. Anyway, it is a great |
| markets of Eastern Europe, Asia, the Middle East | | | | mistake to lump all emerging markets together. |
| and South America have been nothing short of | | | | Each one needs to be considered on its strengths |
| spectacular. Furthermore, an impressive number | | | | and weaknesses, just as individual stocks do. |
| of companies in these emerging markets are | | | | There is huge difference between, say, Thailand |
| rapidly turning themselves from regional success | | | | and Brazil in the same way that there is a huge |
| stories into huge multi-national conglomerates. As | | | | difference between, say, Delta and Ryanair.How |
| the UK's Investors Chronicle recently reported: 'If | | | | can you buy a little piece of the emerging market |
| you are looking for decent, relatively cheap, | | | | action? If you are willing to do the research you |
| relatively safe stocks you no longer have to limit | | | | could invest directly. A good source of information |
| your choice...the world is quite literally your | | | | is Boston Consulting's RDE 100 list. The initials 'RDE' |
| oyster.'Does it make sense, however, for a small, | | | | stand for 'Rapidly Developing Economies' and the |
| cautious, private investor to put his or her hard | | | | list comprises 100 firms from developing |
| earned cash into this sector? For those who have | | | | economies that are leading the pack when it |
| already built up assets closer to home the answer | | | | comes to globalising their businesses. The list is to |
| could well be 'yes'. We live in a global economy, | | | | be found at Some are already global players |
| stock markets historically outperform all other | | | | including heavyweight names such as Mexico's |
| forms of investment and one of the golden rules | | | | CEMEX (one of the world's largest cement |
| of making money is diversification. So, now could | | | | makers); Hong Kong's Johnson Motors (which has |
| well be a very good time to start dipping your | | | | 40% of the global market for small electric |
| toe in rather more exotic foreign waters.Why do | | | | motors); and Brazil's Embraco (which as 25% of |
| emerging markets offer such good potential? I | | | | the global market for compressors). Others |
| have already mentioned globalisation and its effect | | | | already enjoy national or regional dominance and |
| should not be underestimated. The developed | | | | are now poised for global growth. They include |
| world depends for its own expansion on products | | | | India's Tata Motors; Turkey's consumer goods |
| and services purchased from the emerging | | | | firm, Vestel; and Egypt's Orascom Telecom. Sixty |
| economies. Growing political stability, developing | | | | of the firms on the list are, by the way, publicly |
| equity markets and rapidly rising commodity | | | | quoted. If you would prefer less direct |
| prices all add to the attraction. It should also be | | | | involvement there are plenty of managed funds |
| noted that many companies are now listed not | | | | to pick from. The top performer for the last five |
| only on their local exchanges but also in London | | | | years has been Credit Suisse European Frontiers, |
| and New York.What are the pitfalls? It is generally | | | | which is currently showing a 292% gain. |
| said that dips in the world's major stock markets | | | | |