Tom Stevenson Examines Emerging Markets

I think the only stock I hold that could be considered headquartered in an emerging market would be Cheung Kong Holdings (CHEUY/OTC), based in Hong Kong. I've noticed over time that places like Hong Kong and Singapore are home to companies found in the portfolios of both developed and emerging markets.

Yet I don't invest thinking in terms of markets, or countries . . . though I doubt I'll ever have more than a handful of emerging market stocks. (No reason why, just my hunch.)

Moreover, these days value investors can probably find good quality stocks to own in the US, Canada and other places without taking on the emerging market risks.

But the subject is fun to read about, and think about, which makes Tom Stevenson's Daily Telegraph article a good read:

Two clear lessons emerge from the recovery in emerging stock markets over the past six months. First, when all around you are reading the last rites for a region or asset class, your antennae should start twitching. The best time to buy is when it feels hardest to do so.

Second, investors should ignore the short-term noise and back the long-term investment case. When I wrote about the abandonment of the emerging markets thesis six months ago I noted that "the IMF's latest World Economic Outlook forecasts growth in developing Asia of 7.7pc, with China a bit higher and India a bit lower. These are rates the rest of us can only dream of as we head into recession."