Beyond BRIC: 3 Ways to Invest in Emerging Markets

From Tbilisi and Vladivostok to Rio and the gold souks of Dubai, opportunities abound in the world. And just because you’re not 100% sure how to pronounce the names of some of these places doesn’t mean you should avoid looking there for profits in investing. I write as an investor traveling the world to make valuable new contacts and friends. My “special situations” letters abound in reports from the people I’ve met, who continue to update me with boots-on-the-ground analysis. Perhaps you’ll become one of them…

DECLARING an end to the BRIC era might seem the height of foolishness. Last year Brazil, China, India, and Russia accounted for a quarter of global output, a figure that is forecast to rise to about one-third by the end of the decade. China will probably become the world's largest economy before then. India should continue to rise through the ranks as well.

By James Hartje:Investors looking for international or emerging markets tend to stick to international funds or ADRs from the so-called BRIC nations of Brazil, Russia, India and China. But not all BRICs are created equal. China and Russia have impressive growth rates, but you have to be more selective in these markets. China is probably too reliant on stimulus money to boost its economy, and there's evidence of a growing Chinese bubble. Russia requires you to put your faith in a corrupt oligarchy.

James Hartje submits:

We are happy to present yet another guest feature by our by now regular contributor Dr. Sam Subramanian from alphaprofit.com: Emerging Markets: Investment Choices and Risks Sam Subramanian During the global recession, equities in emerging nations declined more than those in developed nations. From its high in 2007 to the low in 2008, the iShares MSCI Emerging Markets Index Fund (EEM) declined 67% compared to the 62% decline in iShares MSCI EAFE Index ETF (EFA).