Nickname: jmawrence

Review: Run, redo, redux. Oil giants are lured into emerging markets and find their investments nationalized or expropriated. Big banks follow and their loans are defaulted on, the politically correct terminology is "debt forgiveness." And, individual investors think they will be treated better than the big shots?

Date reviewed: Jun 2, 2006 5:11 PM

Nickname: AmusedOne

Review: Just like the Nasdaq in the late '90s, investors have come to expect 20% + returns annually in emerging markets. Just like then, they are throwing money at the sector in a blind frenzy fed by greed. While the underlying fundamentals may not have changes overnight, the political climate in such emerging markets as Brazil, Venezuela, and Argentina are changing quite rapidly. I am telling my clients to use this sell off as an entry point into the more stable international countries with improving economies such as Japan and Canada. Emerging markets can still offer a nice mix of diversification and growth, but the days of 30% to 40% annual returns from what I can see, are a thing of the past.

Date reviewed: May 23, 2006 12:48 PM