Completely updated to include late-breaking information on changing global markets, this book introduces readers to the most exciting money-making opportunity of the 21st century. 36 illustrations.
Inhaltsverzeichnis
Contents
Introduction to the Paperback Edition: Recent Crises Present Historic Opportunities
Preface
PART I: THE RICHES TO BE REAPED
Chapter One:
Investment Opportunities Flourish Outside the Developed World
Experience from Recent Investors
Emerging Markets Around the World
Four Tigers: Hong Kong, South Korea, Singapore, and Taiwan
Three Tiger Cubs: Malaysia, Indonesia, and Thailand
One Dragon: China
One Elephant: India
The Flamingos: Latin America
And All the Rest: Eastern Europe and Africa
Consumer Markets in Emerging Nations
Chapter Two:
The Price Is Right on the Other Side
Stocks in Emerging Markets Are Bargains
The Home-Country Bias and the Likely Future Flows of Funds into Emerging Markets
Four Fundamental Reasons Why Rapid Growth Will Continue
Economic Freedom Is Everywhere
The People Are Smart and Thrifty
High Technology Has Already Arrived
The Financial Undergrowth Is Impressive
Could We Be Wrong?
Part I Highlights
PART II: THE DANGERS TO BE AVOIDED
Chapter Three:
Political Instability Can Sour Many an Investment Opportunity
Playing Russian Investment Roulette
Acting on the World Investment Stage
Survivorship Bias
The Mexican Roller Coaster
A Tale of Two Flies
Chapter Four:
Lawlessness Makes Emerging Markets a Dangerous Jungle
The Pervasiveness of Lawlessness
Con Artists Flourish in a World Without Legal Safeguards
MMM Meant Triple Misery for Russian Investors
Harshad Mehta: The Invisible Hand in the Indian Stock Market
Other Complications of Emerging-Market Investing
Chapter Five:
Volatility Guarantees a Bumpy Investment Ride
Taiwan Takes Its Ups and Downs
Happy Flying Crashes in China
The General Evidence on Emerging-Market Volatility
What Is a Global Bargain Hunter to Do?
Chapter Six:
How Diversification Can Reduce Risk
Diversification Provides Protection
Diversification in Theory
Diversification in Practice
The Gains from Global Diversification, 1985-1995
Further Gains from Adding Emerging Markets
Diversification in the Future
Playing the Home Team
Part II Highlights
PART III: HOW TO INVEST IN EMERGING MARKETS
Chapter Seven:
The Professionally Managed Approach
Types of Professionally Managed Funds
Paying Full Price and More for Open-End Funds
Finding Buried Treasure Among Closed-End Funds
Some General Rules for Buyers of Closed-End Funds
Choosing Particular Closed-End Funds
Taking Risks -- and Profits -- with Closed-End Funds Traded Abroad
Chapter Eight:
The Indexed, or Computer-Managed, Approach
The Case for Indexing
Constructing an Index: Some Important Issues
Evaluating the Efficiency of Emerging Markets
Indexing Wins Again
Available Index Instruments
The Vanguard Emerging Markets Index Fund
Other Index Products: World Equity Benchmark Securities (WEBS)
Chapter Nine:
The Self-Directed Approach: Actively Managing Your Emerging-Market Portfolio
Pitfalls of the Self-Directed Approach
Gearing Up
Seven Investment Tips
Tip 1: Look at Regions, Not Companies
Tip 2: Use Price-Earnings Ratios and Dividend Yields to Find Investment Bargains
Tip 3: Overweight Markets with Low Price-to-Book-Value Ratios
Tip 4: Watch Out for False Bargains
Tip 5: Pick Countries Where Political Risk Is Subsiding
Tip 6: Trade as Little as Possible
Tip 7: Prune Your Hedges Severely
Some Final Advice
Chapter Ten:
Bargains in Bonds, Real Estate, and Natural Resources
Emerging-Market Debt
The Case for Investing in Emerging-Market Debt
How to Evaluate Emerging-Market Debt
How to Invest in Emerging-Market Bonds
Emerging-Market Real Estate
The Case for Investing in Emerging-Market Real Estate
The Case Against Emerging-Market Real Estate
How to Invest in Emerging-Market Real Estate
Other Investment Opportunities
Chapter Eleven:
Investment Strategies and Specific Recommendations
General Investment Rules
Rule 1: Stay Cool
Rule 2: Diversify Broadly
Rule 3: Check Out Investment Bargains
Rule 4: Buy and Hold
Creating an Age-appropriate Portfolio
A Final Word
Part III Highlights
References
Acknowledgments
