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Kevin Grewal
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Kevin Grewal is the founder, editor and publisher of ETF Tutor as well as serves as the editor at www.SmartStops.net, where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent... More
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  • Why Emerging Markets Are Attractive 1 comment
    Sep 14, 2009 3:39 PM | about stocks: EEM, VWO
     As the global economy starts to shows signs of improvement, many analysts think that emerging markets will be the place to be and for good reason.
     
    As these nations build infrastructure, and their consumer spending increases, emerging economies often expand faster than their developed counterparts.  In 2008, the gross domestic product (NYSE:GDP) of both China and Brazil grew more than 7% compared with just 1.1% for the United States.  Much of this growth was fueled by building and improving infrastructure and the relatively low amount of consumer debt found in these nations, which enabled them to expand faster than their developed counterparts.
     
    Economists expect these nations to continue to grow, which could further create opportunities for strong corporate profit growth, and in turn appreciation in stocks.  However, one must keep in mind that investing in these nations is riskier than investing in developed countries.  Most emerging economies suffer from unstable political, legal and financial systems, volatile currencies and liquidity issues.  In order to help deal with these risks, having an exit strategy is helpful, especially one that triggers price levels at which an uptrend could come to an end.  Such data can be found at www.SmartStops.net
     
    Some equities which can enable one to gain exposure to emerging markets are the following:
    The iShares MSCI Emerging Markets ETF (NYSEARCA:EEM) which is up 90% from its March low of $19.94 to close at $37.86 on Friday, with a SmartStop of $35.49.
     
    Vanguard Emerging Markets Stock (NYSEARCA:VWO), closing at $37.50 on Friday, up 93% from its March low of $19.41, with a SmartStops of $35.25.
    Stocks: EEM, VWO
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  • Plant the seeds
    , contributor
    Comments (227) | Send Message
     
    Emerging markets story is a good one, with future promise for consumption growth being pretty strong. I would stay away from Eastern Europe. My thoughts in the post below.
    seekingalpha.com/insta...
    14 Sep 2009, 04:21 PM Reply Like
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