You are previewing Investing in Emerging Markets: The Rules of the Game.
O'Reilly logo
Investing in Emerging Markets: The Rules of the Game

Book Description

You see it in every business paper or magazine. You hear it on every financial talk show. You are deluged with "facts" presented as certainty: China will be the number one economy. The BRIC countries (Brazil, Russia, India, China) will continue to outstrip the developed world in growth for decades to come. Emerging markets are therefore a sure bet for making money and should be part of every portfolio.

But is it true?

Emerging markets undoubtedly present one of the most exciting investment opportunities that has occurred over the last twenty years. But so was the U.S. housing market—if you knew when to get in and get out. Emerging markets are no different. To understand them you have to understand that they are different. You have to understand that you are not on Wall Street anymore. Different rules apply. And there are not only vast differences between developed and emerging markets, but vast differences among emerging markets themselves. The opportunities and risks are substantial and vary enormously between countries. Investing in Emerging Markets will help the retail investor, the more sophisticated money manager, and the prospective international businessperson to get beyond the hype, the marketing, and the dreams to understand the real risks and to take advantage of the real opportunities. This book:

  • Provides an overview of the emerging markets prime for investing

  • Outlines the snares awaiting the unwary

  • Guides novice investors and professionals alike

  • Shows how to make money by carefully selecting markets for investment

What you'll learn

This book explains:

  • The real meaning of BRICs, CIVETs, and how each country is vastly different

  • How in-country rules change the game for investors

  • The real nature of the Chinese economic system and what it means for investors

  • The potential of India for investment

  • Russia and the anatomy of corruption (beware the bear)

  • Brazil, Korea, and the limits of government

  • How to investing in "frontier markets"

  • How to profit from emerging markets

Who this book is for

Investing in Emerging Markets is for the retail investor, the more sophisticated money manager, anyone who is or wants to be part of the global market, and anyone who wants to understand the changes in store for the globalized economic world.

Table of Contents

  1. Title
  2. Dedication
  3. Contents
  4. About the Author
  5. CHAPTER 1: Emerging Markets vs. Marketing Emerging Markets
    1. As Chenggong Goes, So Goes China
    2. Chenggong an Emblem of Success. Really?
    3. Commentators with Open Eyes
    4. Wall Street's Track Record
    5. But What About Hedge Funds?
    6. Sophisticated … Guesses
    7. Beware the “Story”
    8. Myth of Constant Growth
    9. An Historical View of “Constant Growth”
    10. Rules: Game Changers
  6. CHAPTER 2: Never Forget: You Are Not on Wall Street Anymore
    1. Rules vs. Relationships
    2. Underground Economies
    3. State-owned Companies
    4. Lack of Information
  7. CHAPTER 3: China
    1. One Billion Capitalists
    2. Crumbling Financial System
    3. Investing in China
    4. Heed Mr. Market
  8. CHAPTER 4: India
    1. The Value of the Law
    2. Choppy Indian Waters for Vodafone Reveals Investment Concerns
    3. The Law Can Work . . . Eventually
    4. Property Rights in China vs. India
    5. Indirect Investment in India
    6. Direct Investment in India
  9. CHAPTER 5: Russia
    1. Indirect Investment in Russia
    2. Direct Investment in Russia
  10. CHAPTER 6: Brazil
    1. Legal Infrastructure
    2. Infrastructure
    3. Indirect Investment in Brazil
    4. Direct Investment in Brazil
  11. CHAPTER 7: Other Emerging Markets
    1. Asia
    2. South Korea
    3. Taiwan
    4. Hong Kong
    5. Malaysia
    6. Thailand
    7. Vietnam
    8. Indonesia
    9. The Philippines
    10. Turkey
    11. Egypt
    12. South Africa
    13. Mexico
    14. Frontier Markets
    15. Emerging Market Bonds
  12. CHAPTER 8: Profiting from Emerging Markets
    1. Why Malkiel Is Wrong
    2. Why Don't They Invest in Themselves?
    3. How to Invest
    4. Pay Attention to Cycles
    5. Go with the Momentum
    6. It's All About the Country
    7. Emerging Markets Are Tied to Established Markets
  13. Appendix: Sources of Information on Emerging Markets
    1. Newspapers and Magazines
    2. Experts
    3. General Resources
    4. Books
  14. Index