Emerging Markets: Investing in the Philippines

When it comes to emerging markets, the average investor is focused on Brazil, Russia, India and China – known as the BRIC countries. But some smaller developing countries are also worth a look as they pull ahead in terms of economic growth and attract booming industries. One notable example: The Philippines grew its gross domestic product 7.2 percent in 2013, and the country has trumped India as the leading destination for call centers. Large corporations including JP Morgan Chase and Procter & Gamble recently expanded operations there. 

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-Igor P Purlantov

Nintendo to Introduce Console for Emerging Markets

Nintendo Co Ltd plans to introduce a new kind of games console and software for emerging markets as early as next year, to capitalize on higher entertainment budgets amidst a growing middle class, its chief executive told Reuters on Thursday.  Satoru Iwata said Nintendo would develop hardware and games oriented towards consumers with lower incomes and less gaming experience than those in developed countries.

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-Igor P Purlantov

Emerging Market Growth in Developed Market Stocks

Emerging market equities are not for the faint of heart. Even the most iron-bellied investors in the sector have had their share of heartburn over the past year.  First there was Fed tapering … and the slow-motion currency crisis that followed in Turkey, South Africa and Argentina, among others. Then there was the on-again/off-again unrest in Turkey and Venezuela. And now, we have the Russia/Ukraine crisis that has yet to be resolved.

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-Igor P Purlantov

Breaking Into a Volatile (But Rewarding) Emerging Market

Every economist has an opinion on the economic viability of emerging markets -- and those opinions rarely correlate. Emerging markets are shape-shifting creatures and this lack of fix creates tension among investors and businesses alike.  However, the business opportunities in BRIC nations (Brazil, Russia, India and China), are copious and companies that have enjoyed global success know that small actions can make a huge difference.   As such, business owners shouldn’t let the recent market instabilities put them off emerging economies. A little strategic thinking will allow entrepreneurs to identify the market opportunities in these volatile but rewarding economies. It just takes a little extra acumen.

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Igor P Purlantov

The Value Shift is on in Emerging Markets, Too

The recent woes suffered by momentum stocks and exchange traded funds are well-documented. At this point, it is not a stretch to say plenty of investors are aware that ETFs that were last year’s darlings have fallen out of favor.  That list includes large, well-known funds such as the iShares Nasdaq Biotechnology ETF and the First Trust Dow Jones Internet Index Fund. However, the shift to value sectors and ETFs from momentum plays has not been confined to U.S.-focused offerings. The same rotation is afoot in emerging markets.

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-Igor P Purlantov

Emerging Markets Are "Extremely Cheap"

David Lebovitz told Bloomberg there is uncertainty in the market at the moment.  He said that when considering opportunities for long term investors he would choose emerging markets as they are "extremely cheap".  This would represent a buying opportunity in the equity markets, with potential soon for the same opportunity in debt markets.

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-Igor P Purlantov

Emerging Markets That Merit a Closer Look

The place to look for stock bargains may finally be among developing economies, where share prices collectively are down 17% from their recent spring 2011 peak and stocks are trading at an average price/earnings ratio of 10.7 -- a 40% discount to shares of developed nations.  Notes Jeff Shen, head of emerging markets at BlackRock: "That's about the widest spread in more than 15 years."

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-Igor P Purlantov

Ivy Funds Adds Emerging Markets Debt Fund

Ivy Funds today launched the Ivy Emerging Markets Local Currency Debt Fund. Subadvised by Pictet Asset Management, a global leader in emerging market debt investing, the fund provides investors the opportunity to capture fixed income opportunities from a select group of emerging market economies.  “At a time when emerging markets exert growing importance across the globe, this fund allows Ivy Funds to further engage advisors and investors, allowing them to tap debt securities through a fund that fits well within our overall product lineup,” said Thomas W. Butch, president and CEO of Ivy Funds Distributor, Inc. “And, by partnering with Pictet, we provide investors with a deep and experienced team that is well-known as a leader in this asset class.”

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-Igor P Purlantov

Emerging Stocks Rise as Russia Sanctions Dismissed

Emerging-market stocks rebounded from a month-low as investors dismissed a new round of Russia sanctions and phone shares surged in China. All but one currency in developing-Europe rose versus the dollar, led by the ruble.  The Micex Index added as much as 1.3 percent in the second day of gains in Moscow and the Russian currency headed for the steepest appreciation in almost two weeks.China Mobile Ltd. soared the most since 2011 in Hong Kong, while China Telecom Corp. posted its biggest two-day rally since August 2012 after reporting higher profit.Turkey’s Borsa Istanbul 100 Index jumped 0.6 percent as Ford Otomotiv Sanayi AS climbed after net income topped estimates.

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-Igor P Purlantov

30 Ways To Invest In Emerging Markets

At first blush it sounds a little gimmicky.  Thirty ways to buy into emerging markets without actually having to invest in emerging market companies: every investor knows the best way to be exposed to China is to invest in Chinese companies.  And every global investor knows there are multinational companies that garner a third or more of their revenues from outside their home base —Europe, Japan, the U.S. That’s what international and global mutual funds are for. You invest in General Motors not just because of U.S. car sales, but because of China and Brazil’s.

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-Igor P Purlantov