Saudi Arabia, Qatar and South Korea. Should they outperform the BRICs?

BlackRock Emerging Markets co-manager Dan Tubbs thinks so.  In an interview to London based CITYWIRE, he says ” investors may be missing a trick in failing to look further than the big four in emerging markets.  Spotting undiscovered markets is a tomb rule for high investment performance.But what are the risks involved?

Tubbs has a point when he says that we should be careful not to understimate the countries outside the Bric.  “18 other global emerging markets exist that make up 48% of the [MSCI] GEM index,” he said.

Saudi Arabia Kingdom

He specifically expects Saudi Arabia, Qtar and South Korea “to outstrip the growth of their larger Bric peers over the next 12 months.

A more complex world to evaluate. Investing is not only a question of high returns. Considering volatility, liquidity and risks are equally important  when making investment decisions. Differences in culture, how to do business,geo-political risks should also be evaluated.  I am not saying they are worse or better, only different.

Emerging markets are a challenging  job to American and European fund managers. Each country has a different ethos. Most of the times, it is wiser to have a local advice  before committing  one’s clients money.

Published by Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Group. She has a PhD in Economic History and advises companies and investment agencies in international business development.She served as Corporate Relations Director and later, on the board of the Brazilian Investment Analysts Association (APIMEC).

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