Any thoughts on Emerging Markets?

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Taggart
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Re: Any thoughts on Emerging Markets?

Post by Taggart »

newguy wrote:You should read the latest wiki leak about the GDP lie that is China. Now how do you figure correlations?

newguy
Whaddya mean "latest leak". :lol: Ken Fisher told us about how China drastically fudged it's GDP figures way back in the late 90's, when he used to have his own forum.
Taggart
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Re: Any thoughts on Emerging Markets?

Post by Taggart »

I hadn't noticed this before, but there was a question posed to Peter Cundill in his last interview, and the answer he gave I found very interesting.

Where do you see the biggest opportunities right now?

In the past 18 months, I have been a big player in emerging market corporate debt through a specialized fund run by Mark Coombs of Ashmore Investment Management. The rationale is fairly straightforward. Emerging market economies have by and large recovered more robustly than their developed counterparts so that the substantial yields obtainable have looked increasingly secure. In fact, in many cases, the corporate credits actually look more attractive than their sovereign counterparts. The returns have been excellent thus far— over 40%—but I suspect that, with the continuing turmoil being experienced in the euro and the spreading pressure on some of the Eurozone sovereign debt, the appeal of emerging market corporate debt will continue for some time yet.
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