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ikkyu2 (99.49)

Emerging markets debt

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June 14, 2009 – Comments (2)

There's a little diversified emerging markets debt fund I follow, FNMIX.  It took a dive, 30 or 35%, in the latter part of '08, following along with the rest of the world credit markets.

But since then it's rebounded to within a percent or two of its all-time highs.  The trajectory is rocket-like and shows no sign of slowing down.

Looking for ideas on how to play the strength in these emerging markets.  A friend - a friend who ought to know - suggested Total Access (DTAC on the Singapore exchange).  They're the #2 (i.e., the non-government) player in Thailand's wireless system.  Others have suggested Indonesia as a comer, that even after all the ruckus, is still slated to grow 3.5-4% this year all told.

What do you, my faithful reader, like lately as an emerging market play?  (And how do you trade foreign stocks that aren't ADRs?  I wouldn't mind finding a decent international broker - but who?)

2 Comments – Post Your Own

#1) On June 14, 2009 at 3:08 PM, bcnu6 (30.31) wrote:

I agree that you are on to something regarding the emerging markets.  I think foreign investments generally offer some of the best opportunities, particularly with the decline of the dollar.

This past week I bought some Hyflux Ltd (HYFXF), a Singapore company that primarily does water purification and desalinization, and manufactures filters and membranes for these purposes.  It has projects in Singapore, China, India, and North Africa.  The growth potential in China is particularly great due to the growing middle class which is demanding improved services as well as industry and agriculture which needs reliable sources of clean water.

I bought this through T Rowe Price brokerage.  There was a $75 surcharge for the foreign stock, a figure that apparently does not change whether one buys one share or 1 million.  The trade was completed about 15 seconds after I placed the order.

Hyflux does have some ADRs, but they are so thinly traded that I felt the foreign stock was the better choice. 

Keep in mind when buying foreign that one loses any protection offered by SEC oversight, and accounting practices may differ from US standards.

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#2) On June 14, 2009 at 5:45 PM, rd80 (99.13) wrote:

I have enough trouble analyzing US stocks, so I use a mutual fund to invest in emerging markets.  Dreihaus Emerging Markets Growth, DREGX.

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