Emerging Markets

Emerging markets. Is that where the next party will be? It appears that US and Europe are headed for stagnation and persistent elevated inflation which may open the doors of opportunity for less developed countries like India and South America. I am sure there are many out there so this is not an all inclusive list of countries or companies but a good starting point to have you thinking.

Here are some ETFs which have liquidity and are more diversified ways to play these foreign markets. Just like the biotech ETFs that provide exposure without the concentrated “business risk” since it is a basket.

Let’s briefly speak about India. From Bloomberg we found this interesting news:

India’s economic transformation appears to be gearing up as its government is spending nearly 20% of its budget on capital investments. That is the most in over a decade.

“India is on the cusp of huge change,” said Nandan Nilekani, a founder of Infosys Ltd., one of the nation’s largest technology services companies. India has quickly created capacity to support tens of thousands of startups, a few billion smartphones and data rates that rank among the lowest in the world, he said.

Could this materialize or just be an attempt? We do not know which is why there is risk so when diversifying with emerging markets it is still only a small portion of a portfolio.

India ETF: INDA

INFY

Other foreign markets:

ETFs: EEM, EWZ, ARGT, ECH

Some companies: RIO, VALE, MELI, SQM, SGML, YPF