Do Not Bet On A Broad Emerging Markets Recovery - FT

TCA

lvader wrote: »

Who the hell buys EM stocks directly?

I think the suggestion was referring to buying UK listed stocks who derive a large proportion of their income from operations in EM countries. As opposed to investing directly in the EM country itself.

lvader

Thats is certainly a valid option but I still believe there is a place for keeping more general EM funds, yes it might be another poor year but no one really knows when the markets will bottom out and start a new uptrend.

gadgetmind

TCA wrote: »

Y
Gadget, on another thread you were tipping EM and resources for 2014. Out of interest, have you substantially increased your exposure in these sectors? Or just thrown a bit in their direction via rebalancing?

I've mostly rebalanced but also slightly increased my allocations to these sectors. I'm also about to buy into 2-3 ITs in these areas and funding this by selling ITs bought in last year's unloved areas that have now come off their deep discounts.

gadgetmind

lvader wrote: »

Who the hell buys EM stocks directly?

Um, me, but they are companies that I know well, operating in technical areas that are my bread and butter, and where I have visited them in person and ideally spoken to senior management. (Over dinner if they are paying!)

lvader

gadgetmind wrote: »

Um, me, but they are companies that I know well, operating in technical areas that are my bread and butter, and where I have visited them in person and ideally spoken to senior management. (Over dinner if they are paying!)

Not that I doubt you, but just so that we are clear, you are talking about companies listed in EM county stock exchanges in local currency?

gadgetmind

There are plenty of definitions of EM, but in my case I've made direct investments in Taiwan, China, S Korea and the Czech Republic. Some of these are household names but others mostly unknown in the UK other than by those in the semiconductor industry.

I will admit that Taiwan heads the list, but it's on the FTSE Advanced Emerging Markets list so I guess that counts?

I will also admit that I've scared myself a bit with some of these investments over the years and am now unwinding and diversifying.

gadgetmind

BTW, I mostly had to use ADRs so maybe you could argue they were NYSE listed?

TCA

gadgetmind wrote: »

I'm also about to buy into 2-3 ITs in these areas and funding this by selling ITs bought in last year's unloved areas that have now come off their deep discounts.

Anything specific on the purchase list? I've had my eye on TEM for a while as a growth prospect, so that'll get snapped up in due course. I like JEMI as an income play and it looks relatively good value at the moment. For resources I'll choose between BRWM and BRCI but the latter is back on a premium.

gadgetmind

JEMI and BRWM is as far as I've got 'cos I'm rammed at work and doing a three countries in four days next week.

bigadaj

lvader wrote: »

That's one of the biggest and best known but yes?

Yes, so your comment indicated that no one would think of buying an emerging market share whereas samsung is the 20th largest company in the world according to forbes.