Where In the World Should I Invest: An Insider's Guide to Making Money Around the Globe
Most emerging markets investment guides focus on financial metrics, but fail to provide the reader with new and relevant insights into the history of the countries, the views of the people on the street, and the financial shenanigans that go on behind the scenes, that make for truly informed investing. As a result, despite the growing interest in investing in these markets, investors are often missing key opportunities because they either have incorrect information about a country where they might invest, or simply don't know what questions they should be asking. Where In the World Should I Invest: An Insider's Guide to Making Money Around the Globe is here to help.
Drawing on author Karim Rahemtulla's personal experiences traveling the globe and exploring the capitals where business is transacted, the book outlines the perils, pitfalls, and rewards of investing in "low float" markets.
- The essential resource for taking the right steps in exploring investment opportunities in foreign and emerging markets
- Expert advice from an author with 20 years experience covering emerging markets
- Commentary on the expectations of foreign investors, the fears of investing abroad, how to set up legal offshore accounts, and much more
Packed with unique insights into twenty countries and regions around the globe based on the author's extensive interviews and travels, Where In the World Should I Invest is a must-read for anyone thinking of expanding their investment portfolio overseas.
Introduction What You Should Know Before You Invest 1
Chapter 1 Journeys to China 7
Chapter 2 India: Heaven or Hell? 43
Chapter 3 Egypt: The Rise of North Africa 65
Chapter 4 Vietnam: The Tiger Cub of Asia 73
Chapter 5 Cambodia: Land of the Eight-Hand Massage 83
Chapter 6 Thailand: So Much for Potential 91
Chapter 7 Turkey: Knocking at the Door 99
Chapter 8 Singapore: The Model of Efficiency . . . and Sometimes Boredom! 111
Chapter 9 Russia and the CIS: Painful Prosperity—Reinventing a Society 121
Chapter 10 Brazil: The Girl from Ipanema . . . Got Carjacked! 133
Chapter 11 Chile: A Diamond in South America’s Rough 143
Chapter 12 Africa: African Renaissance 153
Chapter 13 Central America and Mexico 171
Chapter 14 Eastern Europe: As the Euro Goes . . . 183
Chapter 15 Argentina: Fountains of Wealth 189
Conclusion Investing in Emerging Market Stocks 195
Appendix World Oil Consumption Chart 203
Additional Sources 209
About the Author 211
Karim Rahemtulla is a specialist in emerging markets and options trading with more than twenty years of experience trading in international markets. Rahemtulla is the founder and Editor of The Smart Cap Alert, and Emerging Markets/Options Editor of Wall Street Daily, both of which cover all aspects of stock and options trading. He also travels the world seeking out the best investment opportunities for his readers. He is a featured speaker at more than a dozen frontline investment conferences every year.
"Investing globally requires both a guide and a plan of action. In Where in the World Should I Invest, Karim Rahemtulla shares not only opportunities to profit that exist now, but also opportunities for tomorrow that are still beyond the reach of investors' radar. His international background and extensive travels combine to provide a frank and practical review of the most dynamic growth stories of today and tomorrow."
Bill Bonner, New York Times bestselling author
"Karim Rahemtulla is the new International Man. To profit and invest in the dynamic global economy of the 21st century, you need a well-documented passportbut if you don't have 10 years to travel, better to buy Karim's book, an indispensable short-cut. This is the best hands-on guidebook to global investing I've ever read. His personal travels are brimming with insights and wisdom."
Mark Skousen, Editor, Forecasts & Strategies, Bestselling Author
“Investors should seek out the best investment opportunities wherever they reside. And I know no one is more capable of uncovering them than Karim Rahemtulla. He has been there on the ground many times - in Europe, Asia, Latin America and the Pacific Rimresearching and analyzing hundreds of stocks and bonds, and recommending to his readers with extraordinary success. Nowwith Where in the World Should I Investhe shares the best of what he's learned with you. This is essential reading for every serious investor.”
Alex Green, Investment Director, The Oxford Club; New York Times bestselling author
“Karim has written a handy and practical investment guide to some of the world’s most attractive emerging markets. But it’s unlike most such guides in that Karim has done what others haven’t: He got out of his office and had a look himself. This is the best kind of research, by a well-traveled hand who has been there and asked the tough questions. A must-have for anyone thinking of investing abroad.”
Chris Mayer, author, World Right Side Up: Investing Across Six Continents and Editor, Capital & Crisis
“Karim Rahemtulla is one of the smartest investing minds working in the trenches today. It's important to listen to what he has to say here - in fact your entire financial life may depend on it. He shows in great detail and with fearlessness where the next generation of mega wealthy individual will make their millions. Follow his advice, and you could be one of them.”
Mike Ward, Publisher, Money Map Press
"Karim does it again, taking us through a wide range of global markets in what seems to be an effortless and enjoying read. From Tallinn to Toledo, he shows us opportunities that exist in markets all over the world and are accessible to anyone, not just the Wall Street elite. A top notch read for every serious investor."
Kevin Kerr, President, Kerr Trading International
“Karim Rahemtulla is at the top of my list whenever I want on-the-ground feedback on any emerging market. For over two decades now I've delighted in hearing Karim's first-rate travel experiences to exotic lands. But what I appreciate most is his brutal candor when it comes to what's really going on in a country, from the politics to the local small business owners. Karim's teachings of the pitfalls of global investing are a rarity on Wall Street. Combined with his successful, under-the-radar global profit opportunities they are invaluable.”
Julia C. Guth, Publisher, The Oxford Club Group
“Well versed, well travelled and well informed, Karim is the ideal guide for international investing.”
Keith Fitz-Gerald, Chairman, The Fitz-Gerald Group, Chief Investment Strategist, Money Map Press Author, Fiscal Hangover: How to Invest in the New Global Economy (Wiley 2009)
“If there's one person I would trust on what investments to make outside of the U.S., Karim would be my go-to guy. The true genius of his travels is the deep investigative results he comes away with after meeting business insiders, corporate executives, members of various foreign stock exchanges, and people in the trenches on the street. Karim gives multiple investing ideas including mutual funds and ETFs and individual stocks for places all around the world, including: Southeast Asia, Africa, the Middle East, South America, Central America, and Eastern Europe. It is fast-paced, well-written, funny, and truly worthy of your time, and it contains a wealth of information about where to shop, eat and stay too! Karim has been in the investing business for 20+ years and his knowledge of global investing is superior to most in the field.”
Lee Lowell, editor of The Instant Money Trader newsletter for The White Cap Research Group and a former NYMEX options market-maker
“Karim is truly a modern day Magellan. Where in the World Should I Invest is proof positive that his insights into today’s most fertile capital markets literally have no borders. Thank you, Karim, for sharing such a lucrative journey with us!”
Robert Williams, Publisher and Founder, Wall Street Daily
“Take some of the world’s most seasoned investment advice, mix with decades of globe-trotting, on-the-ground travel, dining, and research, and you’ll be glued to your chair for hours reading this book. Every traveler who invests, or every investor who travels, should have this book tucked under his or her arm when they board their flight.”
David Fessler, Energy & Infrastructure Specialist, The Oxford Club
“You'd be crazy to invest in emerging markets without first reading Where in the World Should I Invest. Not only is it a fun and interesting read, Karim has had his boots on the ground in the countries he's written about, met with officials, and has a unique perspective you won't find anywhere else. It's a must have for any emerging markets investor.”
Marc Lichtenfeld, Associate Investment Director, The Oxford Club
Emerging market investing is not for the faint of heart. Countries that have frequent changes in leadership, high rates of poverty, illiteracy, and sometimes even high rates of crime are hardly the types of markets that engender confidence. However, places like China, South Africa, Brazil, and India are growing at four to five times the rate of developed markets like the United States or Europe. Emerging markets are a ride investors cannot afford to miss, but they are often missing key opportunities because they either have incorrect information about a country where they might invest, or simply don't know what questions they should be asking. Drawing on Karim Rahemtulla's personal experiences traveling the globe and exploring the capitals where business is transacted, Where in the World Should I Invest?: An Insider's Guide to Making Money Around the Globe (Wiley; April 2012; $34.95; 978-1-118-17191-2) outlines the perils, pitfalls, and rewards of investing in "low float" markets.
Analysts who garner their research from the Internet or popular news media often paint a rosier picture than what is reflected in reality. Rahemtulla set aside his rose-colored glasses nearly 20 years ago when he encountered his first taste of Chinese moonshine at a steel mill purportedly owned by a private company. This steel mill was anything but legitimate and the owners were engaged in massive fraud, one that is still being perpetrated in many Chinese companies today. However, as Rahemtualla points out, “for every suspect opportunity there lie 10 more than are legitimate, undiscovered, and waiting for the fortunate investor who has the time to look, learn, and deploy capital at a very early stage.”
Rahemtualla covers 20 countries and regions around the globe, pointing out the strengths, weaknesses, opportunities, and threats for each, as well as such investing insights as:
- Global economic contraction, especially in China, could hurt Brazil the most of any emerging market as it is reliant on exports and natural resources for a good chunk of its growth.
- The Indian rupee is not a convertible currency. It does not trade on the world markets, and its value is strictly controlled by the Reserve Bank of India. The government likes to keep the rupee cheap. Whit it keeps foreigners investing in India by buying its goods and services, the artificially low rate also means that locals have to content with high inflation on goods not subsidized by the government.
- The U.S. dollar is accepted in many places in China and is not susceptible to counterfeiting, as is the Chinese Yuan, especially the 100-Yuan note.
- Russia is fraught with risks beyond those of economic cycles, including the Russian mafia, which has close ties to the government; tensions over the huge divide between the mega rich and the poor; and questions about rule of law and market.
- South Africa produces an incredible 90 percent of the world’s platinum and 41 percent of the world’s gold; yet the money made from most of the country’s commerce finds its way onto the books of a relatively small number of companies long established in the region.
- Thailand has had 17 different governments over the past 63 years but in fact, the country is thriving financially and should be seen as an investment opportunity.
- With the exception of Mexico, Central America presents little stock investing opportunities. Real estate and retirement opportunities abound. Gone are the days when you could buy an oceanfront lot for $25,000, but properties in the $100,000 to $150,000 range still exist.
- Known for a stable banking system and sporting South America’s top sovereign debt rating, Chile has been able to balance its economic system through its rainy day fund, something rare in emerging markets of any size.
The key to successfully identifying the opportunities in emerging markets is to cut through the rhetoric and look past the smokescreens. Where in the World Should I Invest? provides a roadmap to understanding what makes an emerging market viable for enough time that it can transition into a developed market and to figuring out how to actually invest in and profit from this knowledge.