Opinion: Emerging markets offer risk, but also reward for investors – by Michael Schaab (Vancouver Sun – August 30, 2012)
The Vancouver Sun, a broadsheet daily paper first published in 1912, has the largest circulation in the province of British Columbia.
Michael Schaab, CA CFA, is a vice-president and portfolio manager at Leith Wheeler Investment Counsel Ltd. in Vancouver. The article is not intended to provide advice, recommendations or offers to buy or sell any product or service.
With fewer analysts and investors in the mix, the chance of finding undervalued investments is greater
Emerging markets are often touted in investment circles and the business media. Yet many investors are unsure of how to invest in emerging markets, or even whether they should. These markets are alluring but can be mysterious, misunderstood or simply difficult to access.
With a prudent strategy, however, emerging markets can strengthen an investor’s portfolio. Before adding exposure, investors should understand the tenets of emerging-market investing, its risks and rewards and a proper approach to investing in them.
So, what is an emerging market? It’s a country or region that is less developed financially and economically than “developed” markets. Meanwhile, its economy is growing rapidly. Read the rest of this entry »