This book examines emerging markets as both an investment option and opportunity. It first looks at what the world's emerging markets are and how they work as an asset class, explaining what this means in principles and how such economies differ from more developed markets, particularly in the wake of the credit crunch and ensuing Western financial crises. It then goes on to examine emerging marketing investing in general, detailing both the attractions and the pitfalls for potential investors, and taking into account such as areas as the demographic, political, economic and social considerations.
Julian Marr is a freelance investment journalist and weekly columnist for a number of financial publications and websites. He has also held senior positions with a range of specialist and personal finance titles, including editor of Bloomberg Money and editorial director of Investment Week. He began his career as a solicitor in the City but that really was a long time ago. Cherry Reynard is an award-winning freelance journalist. She has written for a broad range of national, consumer and specialist financial media, including The Telegraph, The Independent, What Investment, Morningstar and Institutional Investor. She began her career as an accountant with PricewaterhouseCoopers and has also worked for JP Morgan.
Acknowledgements. 1 An Introduction to Emerging Markets. 1.1 Introduction. 1.2 What are Emerging Markets? 1.3 A Brief History of Emerging Markets. 1.4 A Tale of Two Decades. 1.5 Decoupling and Globalization. 1.6 After the Storm. 1.7 So Far, So Good. 1.8 Interaction Between Emerging Markets. 1.9 The Ethical Dimension. 1.10 Conclusion. 2 The Investment Case for Emerging Markets A Balanced View. 2.1 Introduction. 2.2 Why Invest in Emerging Markets? 2.3 Capturing the Opportunity. 2.4 Demographics and Consumption. 2.5 Infrastructure. 2.6 Financial Services. 2.7 Valuations, Earnings and Return on Equity. 2.8 Some Technical Considerations. 2.9 Risk. 2.10 Matters of Trust. 2.11 Corporate Governance. 2.12 Hell is Other People. 2.13 Building Emerging Markets into a Balanced Portfolio. 2.14 How to Invest. 2.15 Bonds. 2.16 Decisions, Decisions. 2.17 Conclusion. 3 New Schools of Thought Hype or Reality? 3.1 Introduction. 3.2 Argument 1: Decoupling. 3.3 Argument 2: The Commodities Supercycle. 3.4 Argument 3: Sovereign Wealth Funds Will Take Over the World. 3.5 Argument 4: The East is in the Ascendancy While the West is in Decline. 3.6 Argument 5: The Success of Emerging Markets is Assured. 3.7 Argument 6: EmergingMarkets are Far HigherRisk than Developed Economies. 3.8 Conclusion. 4 The "BRIC" Economies. 4.1 Introduction. 4.2 Overview. 4.3 China. 4.3.1 A Brief Economic History. 4.3.2 The Investment Case for China. 4.3.3 Industrialization and Infrastructure. 4.3.4 Country-specific Risks. 4.3.5 China s Stock Market. 4.3.6 Conclusion. 4.4 India. 4.4.1 A Brief Economic History. 4.4.2 The Investment Case for India. 4.4.3 Infrastructure and Outsourcing. 4.4.4 Country-specific Risks. 4.4.5 India s Stock Market. 4.4.6 Conclusion. 4.5 Russia. 4.5.1 A Brief Economic History. 4.5.2 The Investment Case for Russia. 4.5.3 Consumer Demand. 4.5.4 Country-specific Risks. 4.5.5 Russia s Stock Market. 4.5.6 Conclusion. 4.6 Brazil. 4.6.1 A Brief Economic History. 4.6.2 The Investment Case for Brazil. 4.6.3 Post-hyperinflation. 4.6.4 Consumer Demand. 4.6.5 Country-specific Risks. 4.6.6 Brazil s Stock Market. 4.6.7 Conclusion. 5 The "Emerged" Emerging Markets. 5.1 Introduction. 5.2 Overview. 5.3 Hong Kong a Brief Economic History. 5.3.1 The Investment Case for Hong Kong. 5.4 Singapore a Brief Economic History. 5.4.1 The Investment Case for Singapore. 5.5 South Korea a Brief Economic History. 5.5.1 The Investment Case for South Korea. 5.6 Taiwan. 5.7 Investing in the Region. 5.8 Conclusion. 6 The Rest of Asia. 6.1 Introduction. 6.2 Overview. 6.3 Indonesia. 6.4 Malaysia. 6.5 The Philippines. 6.6 Thailand. 6.7 Vietnam. 6.8 Investing in the region. 6.9 Conclusion. 7 The Rest of Emerging Europe. 7.1 Introduction. 7.2 Overview. 7.3 A Brief History of Emerging Europe. 7.4 Region-specific Risks. 7.5 The Investment Case for Poland. 7.6 The Czech Republic and Hungary. 7.7 The Baltic States. 7.8 The Balkans. 7.9 Investing in the Region. 7.10 Conclusion. 8 The Rest of Latin America. 8.1 Introduction. 8.2 Overview. 8.3 A Brief Economic History of the Region. 8.4 Mexico a Brief Economic History. 8.4.1 The Investment Case for Mexico. 8.5 Argentina a Brief Economic History. 8.5.1 The Investment Case for Argentina. 8.6 Chile a Brief Economic History. 8.6.1 The Investment Case for Chile. 8.7 Peru and Colombia. 8.8 Investing in the Region. 8.9 Conclusion. 9 Emerging Markets The Final Frontiers. 9.1 Introduction. 9.2 Overview. 9.3 The Middle East. 9.4 Africa. 9.5 Investing in Frontier Markets. 9.6 Conclusion. 10 2020 Vision The New Economic Order? Index.