To: ggersh who wrote (67527 ) 10/28/2010 5:12:57 AM From: elmatador Respond to of 218167 how can an average investor take advantage of this huge growth potential in emerging markets? A few practical guidelines should be followed: 1. Stick to the most developed emerging markets because they have the most political and economic stability and should not collapse as some less stable emerging markets could. These include China, India, Russia and Brazil. 2. Think of 1950s investment in America, and apply the same ideas to those countries. If you can find the GE, Wal-Mart, etc., in these developed nations and build a portfolio around them, you should see strong growth for years to come. 3. Stay away from new technology companies or other companies that are still in their infancy. Any investment in these companies should be done strictly with risk capital, and they should not be a part of your portfolio nucleus. 4. Invest in large companies in telecommunications, energy, technology and other major industries. You can also take advantage of this investment idea by investing in U.S.-based mutual funds that are completely exposed to Chinese companies such as the Templeton Global Opportunities Fund, Matthews China Fund, or the U.S. Global Investors China Region Opportunity Fund. Another option for investors who do not want to put capital at risk in the form of foreign equities is to focus on emerging market bonds. Emerging market bonds should significantly outperform bonds from developed nations over the next five years as interest rates stay at artificially low levels in the developed world. This interest rate yield spread should entice many investors and cause a massive capital flow into emerging market bonds. Traders who are going to expose assets to a foreign currency should check forex broker ratings to make sure they are investing with a broker that is reputable.webcpa.com