Investing in Smaller Emerging Markets

An article in SmartMoney Magazine by Anna Prior explores the possibilities to Investing in Smaller Emerging Markets opens a new window to right investors. This is found one of the best article provide some insight to the next investment opportunity.It’s a stat that could lead many investors to do a double take: The stock market of Sri Lanka soared 91 percent last year. But it’s true. While all the attention, and most of the money, keeps going to the so-called BRIC countries (Brazil, Russia, India and China), they were trounced by a country many think of only when there’s a bad cyclone or a civil war. And Sri Lanka, whose economy grew 8 percent last year, isn’t alone in offering another option to investors looking for emerging markets.

Indeed, as China looks to slow down parts of its economy, strategists are turning to other parts of the world for growth. They don’t have to look very hard. Countries in both hemispheres have seen their economies surge along with their stock markets. Part of this strong performance can be attributed to a surge in demand worldwide for the commodities found in some of these nations. And part of it is simply a result of the global economic recovery.

In some instances, such as with Pakistan, national economies and markets have rebounded from a disastrous two years. The best news for investors: While there might be corrections, even sharp ones, these nations have good prospects, according to some pros. “There’s a multitude of opportunities in these non-BRIC markets,” says Nick Chamie, global head of emerging markets research at RBC Capital Markets.

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