Investing in Emerging Markets The Rules of the Game

You see it in every business paper or magazine. You hear it on every financial talk show. You are deluged with “facts” presented as certainty: China will be the number one economy. The BRIC countries (Brazil, Russia, India, China) will continue to outstrip the developed world in growth for decades to come. Emerging markets are therefore a sure bet for making money and should be part of every portfolio.

But is it true?

Emerging markets undoubtedly present one of the most exciting investment opportunities that has occurred over the last twenty years. But so was the U.S. housing market—if you knew when to get in and get out. Emerging markets are no different. To understand them you have to understand that they are different. You have to understand that you are not on Wall Street anymore. Different rules apply. And there are not only vast differences between developed and emerging markets, but vast differences among emerging markets themselves. The opportunities and risks are substantial and vary enormously between countries. Investing in Emerging Markets will help the retail investor, the more sophisticated money manager, and the prospective international businessperson to get beyond the hype, the marketing, and the dreams to understand the real risks and to take advantage of the real opportunities. This book:

• Provides an overview of the emerging markets prime for investing
• Outlines the snares awaiting the unwary
• Guides novice investors and professionals alike
• Shows how to make money by carefully selecting markets for investment

You see it in every business paper or magazine. You hear it on every financial talk show. You are deluged with “facts” presented as certainty: China will be the number one economy. The BRIC countries (Brazil, Russia, India, China) will continue to outstrip the developed world in growth for decades to come. Emerging markets are therefore a sure bet for making money and should be part of every portfolio. But is it true? Emerging markets undoubtedly present one of the most exciting investment opportunities that has occurred over the last twenty years. But so was the U.S. housing market—if you knew when to get in and get out. Emerging markets are no different. To understand them you have to understand that they are different. You have to understand that you are not on Wall Street anymore. Different rules apply. And there are not only vast differences between developed and emerging markets, but vast differences among emerging markets themselves. The opportunities and risks are substantial and vary enormously between countries. Investing in Emerging Markets will help the retail investor, the more sophisticated money manager, and the prospective international businessperson to get beyond the hype, the marketing, and the dreams to understand the real risks and to take advantage of the real opportunities. This book: Provides an overview of the emerging markets prime for investing Outlines the snares awaiting the unwary Guides novice investors and professionals alike Shows how to make money by carefully selecting markets for investment

William B. Gamble is an international lawyer and consultant specializing in emerging markets. He has written weekly columns for financial papers in Dubai, Alrroya, and Mumbai. He has had 27 letters published in the Financial Times and many in the Wall Street Journal. His articles have appeared in Foreign Affairs and the Harvard International Review. He has been quoted in MarketWatch, The New York Times, USA TODAY, The Far Eastern Economic Review, The Asset, The International Herald Tribune, The South China Morning Post, Sankei Shimbun, and The Investment Professional. He is often interviewed by NDTV Profit (India) and has been interviewed by ABC, CNN Asia, Bloomberg, Fox, CNBC, NPR, Yahoo Finance, and other television and radio stations around the world. He is the author of Investing in China and Freedom: America s Competitive Advantage in the Global Market. Gamble is on retainer to speak to groups of Chartered Financial Analysts around the world.