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The Art of Emerging Markets Investing
When you're choosing which emerging markets to invest in, it's important to keep this one precept in mind: With markets - even more so than with individual stocks - buying what's fashionable and overpriced (in other words, what's "hot") can be hazardous to your wealth.
The reason for this is fairly obvious. Most investors who buy emerging-market stocks don't have a good handle on the political and economic risks of the country concerned.
When the market in question starts to rise, they get excited - or even worried that they might be getting left behind - and jump in.
That's why these markets tend to overshoot on the upside.
And it's emotions that cause these markets to overshoot to the downside, too, following
a crash, making the best emerging-markets bargains very good, indeed.
So let's take a look at markets around the globe right now to find
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Tibebu Tefeta - Business Consultant