As Sanusi Is Suspended, Is Nigeria Still The World’s Market Darling?
21 February, 2014UK’s Maiden Sukuk Comes Over All Coy
1 March, 2014Forbes.com, February 2014
Investors today face a quandary with emerging markets. Sentiment towards them is bearish, and has been for some years now, with far greater faith in developed economies than developing. But at the same time, there is no denying that emerging markets, with their high populations and strong demographics, will be the engines of global growth in years ahead.
While investors grapple with the question of when it will make sense to re-allocate assets to emerging market shares in expectation of a rebound, there is another way of gaining exposure to developing world growth rates without having to deal with local, falling stock markets. One common approach is to buy a western blue-chip that gets a lot of its profits from the emerging world. US fund managers tend to refer to Coca-Cola KO +0.26% as an example of this, while Europeans talk about Nestle and Australians mention BHP Billiton BHP -2.67%. In all cases, the principle is the same: a Western-domiciled business, with all the familiarity and security that comes with that, but an earnings model built on the emerging world.
In an occasional series, I will be looking at stocks that allow investors to do this, starting today with HSBC, which this morning released its annual result for 2013. If you’re interested in studying this in depth, click this link and then download the PDF available on the right of the page, ‘presentation to investors and analysts’.
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