Cherry-picking in the smoking ruins of the global markets
Today's Financial News - Posted September 26, 2008
Recent market crashes have created incredible opportunities in emerging economies such as Brazil, Russia, India and China. Oxford Club’s Karim Rahemtulla tells you the easiest and most risk-free way to make the investment of a lifetime.
by Krista Das
Baltimore – (TFN): Five years ago Goldman Sachs picked the four emerging markets they felt had the most profit potential and the term BRIC was born. Fast forward to the present and a lot has happened with Brazil, Russia, India and China. Some gains, some losses and a number of valuable lessons in global economics.
Joining us now is internationally renowned options trader and investment director for Accelerated Profits Report Karim Rahemtulla who is here to tell us the only way that he would invest in emerging markets today.
Karim, welcome to Market Insights.
The Chinese markets went from boom to bust, but yet China is still the third largest economy after the U.S. and Japan. Do you think we should continue to look to this country for profits despite government corruption?
Karim Rahemtulla: Oh, without a doubt. China is probably going to be one of the most important markets in the next 30 to 50 years and it’s actually times like these that you should look more carefully than ever.
Krista Das: Is it still fair to say that all four BRICs are expected to remain the world’s best emerging markets to invest in or do you see other nations creeping into the picture pushing the current ones out in the next couple of years?
Karim Rahemtulla: There are other nations, but there aren’t any other nations that have this type of magnitude in the marketplace. You’ve got countries like Vietnam that’s always making the news. You’ve got little countries in Africa that are coming up and South Africa, but these are pretty minor players in terms of what they can accomplish over the next couple of decades.
When you’re looking at the BRIC countries that’s really where the engine drivers are for the emerging markets.
Krista Das: Now would you suggest buying into a series of ETFs or even individual companies from the BRICs?
Karim Rahemtulla: Well it’s really interesting. Like right now what we’re seeing in the BRICs is something that you see every five or six years and it’s so funny that this is happening ‘cause people are so interested in the emerging markets now that they think this is a one of opportunity where markets are plummeting 30, 40, 50, 60 percent like what’s happening in China, what’s happening in Russia, India to some extent and Brazil as well.
You have to realize that in emerging markets investing this happens frequently. It’s almost like a pattern and you’ve got to use these opportunities to invest in these markets.
What’s happening right now happened in Russia six years ago when they had issues with the ruble. The Russian market collapsed 70-80 percent only to recover by a factor of two or three later and that’s what’s happening in China. So you’ve got to pick your points.
So, how would I invest in these markets right now? There are a couple of vehicles. ETFs are good. I like one vehicle called the Templeton Emerging Markets Fund. The symbol is EMF as in Frank and that’s run by Mark Mobius and his crew.
That’s down about 30 or 40 percent this year. So it’s an ideal point to start dipping your toes into the water and maybe averaging in over the next 12 to 18 months.
Krista Das: Sounds good. If you had to choose, what is your favorite of the BRIC economies?
Karim Rahemtulla: By far it would have to be China. China has the most potential of all of them and Brazil is a very good economy to invest in. Brazil is very accessible and it’s very open compared to the other three.
Karim Rahemtulla: So the inefficiency in the marketplace isn’t available in Brazil as it is in China. China is I would say probably the least – not the least – yeah; the least corrupt of the remaining ones.
So you have to look at it on a scale of which market stinks the worst and Russia is probably the biggest stinker of the pile. That’s followed by India, then China, then Brazil in a matter of going from four to one.
Krista Das: Karim, thanks for your insights today. Good information.
If you would like to learn how to invest in emerging markets like the pros, check out Karim’s investment research service, Accelerated Profits. You can do so by clicking on the screen or by visiting Today’s Financial News.com.
****Make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. Subscribe to our feed by email. Subscribe to our feed in your RSS reader.
Next Article: Bull amongst the bears: JPMorgan (JPM) offers big profits
Posted by Krista Das · Filed Under Featured Video, International Investing, Podcast, Videos
| 
Be the first to leave a reply.
Your comments are welcome
Follow TFN via RSS or Twitter |
 |
 |
 |
Advertisement
Latest Headlines
- The Big Picture for Sinobiopharma, Inc. (SNBP)
- Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news
- The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
- Steepest drop since Feb. 2009: Here we go again!
- Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down