The emerging markets story is now a full blow investment theme. The underlying strength in the economies of Brazil, India and China have been a salve for investors seeking economic growth in a world bereft of growth. That being said there is still a great deal of work to be done to bring these economies up to developed nation status. Not surprisingly analysts and investors focus on these infrastructure needs as an investment theme.
While many investors focus on companies that could benefit from increased infrastructure activity another way to play this theme is via debt as well. A series of new funds now allow investors to purchase local-currency denominated debt in the emerging markets. Like equities, this performance will be dependent on the continued success of these economies, but at least it provides another way for investors to access these growing markets. In tooday’s screencast we note some of the options investors have in this area.
Posts mentioned in the above screencast:
Why are Brazil, China and India rebounding faster than the US? (Real Time Economics)
The emerging markets infrastructure play. (Fortune)
Weekly chart of the PowerShares Emerging Markets Infrastructure ETF (PXR). (Finviz)
WisdomTree plans a Brazil bond ETF. (IndexUniverse)
Daily chart of the WisdomTree Emerging Markets Local Bond ETF (ELD). (Finviz)