Your Emerging Markets Portfolio Is Missing The Bigger Picture
http://www.forbes.com/sites/chrisbarth/2011/10/14/your-emerging-markets-portfolio-is-missing-the-bigger-picture/"Putting everything in emerging markets into one bucket doesn't make much sense," says David Riedel, president of Riedel Research Group and author of Finding The Hot Spots: 10 Strategies For Global Investing. "I think one should at least start at the country level in understanding the differences in a stock market and in an economy within the emerging market descriptor, in order to get the beginnings of a good investment strategy."
Riedel Research's team of 31 analysts develops reports on companies in various markets across the globe. After spending nearly a decade in China, Taiwan and Thailand as an analyst for Salomon Smith Barney, Riedel saw the need for feet-on-the-street research in emerging markets. His firm takes a granular approach to dissecting a multitude of investment opportunities, including less-discussed markets like Indonesia, Poland, and Turkey.
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Steve Forbes Interview: David Riedel, International Investing Expert
http://www.forbes.com/sites/steveforbes/2011/10/24/steve-forbes-interview-david-riedel-international-investing-expert/David Riedel is the president of Riedel Research Group, a firm dedicated to boots on the ground research in international markets. Recently, he sat down with Steve Forbes to talk about emerging markets, myths regarding investing abroad and areas of opportunity.
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This is a bump up in case anyone missed it and still interested in reading. I thought this Q&A with David Riedel was pretty good and quite interesting in terms of looking beyond the BRICs for EM opportunities.
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"We like, once again, those countries with large enough domestic populations, a dynamic and diverse domestic economy. Turkey, one of our favorite markets right now. Turkey finds itself between Iraq and a hard place with Europe on one side and Iraq on the other, but they’re doing very well in their mercantalist tradition of being a trader and working with corporate groups throughout Europe as an alternative to building in Europe."
"Let’s talk about Indonesia for a minute, because this is a market that used to be very exotic. It was a very difficult place for people to imagine investing in. And over the last 10 years you’ve seen Indonesia come from the brink of disaster during the ASEAN financial crisis at the end of the 1990s to having a very good, well-run stable of corporate families and groups that have done a very good job overseeing the largest Muslim democracy in the world, transitioning to a fully functional economy.
Now that’s what’s exciting about emerging markets. Finding those opportunities where you have a very troubled situation that, through a series of good decisions and some good luck, ends up being a fully functional economy. Today Indonesia ,with its 200 million population, has about 30% of its economy supported by exports of palm oil and thermal coal, both of which go to China and India. They have a seemingly insatiable appetite for both.
And a very dynamic domestic economy where you can buy companies that are in the agri-business space or in infrastructure building, in automobiles, in all kinds of spaces in Indonesia. There aren’t very many ADR ways to play Indonesia. For people looking for ways to play that, they’re kind of limited to the telecom incumbent PT Telcom. But that’s a great company and a good proxy for good growth in Indonesia."