Despite Volatility, Emerging Markets Are Proving to Be Smart Investments

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With Reuters, Forbes, and a variety of other reputable financial sources all reporting that the S and P 500 continues to hover at record levels, with the Dow Jones industrial average doing equally well, it should be no surprise that many Americans are choosing now as the time to invest. However, for many others, the stinging losses of the Great Recession are still too fresh in their memories to go back to the stock market. So, what do financial investment advisors recommend as an alternative? Emerging world markets.

Why Are the Best Investment Advisors Pushing Investors Toward Emerging Markets?
As written in The Wall Street Journal, as the economy continues to recover in the United States, so, too, is it recovering in emerging markets, like India, Pakistan, and others. “The middle class in many of these countries is expanding, which should help some companies see relatively strong growth,” writes the WSJ’s Gregory Zuckerman. However, even as certified financial planners and analysts continue to sing the praises of investing in emerging markets, they are advising their clients with caution.

Not every emerging market is worth the investment. Turkey, for example, used to be a sure bet when it came to smart foreign investments. However, as the politically and theologically charged environment in Istanbul continues to deteriorate, any returns investors might have once seen are disappearing in kind. Now more than ever, experts say, investors need to find a financial advisor who can help them negotiate the potentially lucrative but volatile investment world of emerging markets.

Find a Financial Advisor Who Knows the Smart Funds to Play
Just as you can find a financial advisor who specializes in equity funds and others who gamble your money on investment theory, so can you find a financial advisor who knows the smart funds to play. For example, as the Daily Mail Online writes, there are a number of slow growing funds that are seen by many as smart bets in the emerging markets investment sphere.

Take Jupiter India, for example: if you can find a financial advisor who has worked with this fund before, your chances of making a smart investment and seeing a return jump through the roof. Jupiter India is a fund that works with its partners to invest in Pakistani and Indian businesses, both of which are in growth markets. This is slow going, but it could be a smart play.

Now, you might be wondering why you can’t simply invest for yourself. Quite simply, unless you are a financial professional with experience in emerging markets, you’re going to get burned. The Telegraph gives the example of investors who placed too much faith in Lazard Developing Markets, only to find they’re going to lose 25.4pc over three years. If you find a financial advisor who knows the emerging markets and the best funds, you’re less likely to have similar issues.

Does a lack of faith in Wall Street have you reconsidering investing in the emerging markets? More like this.

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