Comments on: Reframing Dividend Investing http://www.dividendtree.net/commentary/reframing-dividend-investing/ My journey of planting dividend investment seeds and watching it grow.... Thu, 31 Mar 2011 20:45:33 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Dividend Tree http://www.dividendtree.net/commentary/reframing-dividend-investing/comment-page-1/#comment-147 Dividend Tree Fri, 12 Jun 2009 15:01:13 +0000 http://www.dividendtree.net/?p=699#comment-147 Manshu, I agree with your view of BRIC label does not make sense. Each country is different and they work in different way. This is again one off wall street investment firms creation (think GS!). On a personal note, I am most bullish on Brazil/India markets. Demographics and internal consumption is in their favor. However, I find Russia/China to be having similar ambitions with different execution method. China wants go economic supremacy way, while Russia wants to go military way using its natural resources. On the other hand India/Brazil are following more or less similar approach of demographics/internal consumption way (and both do not aspire for world dominance, perhaps only recognition). I do not know about Brazil, India is surely a volatile market, but if one has 10+ year of horizon, India is the way to go. In case of India, the big risk for US investors is (1) lack of correct information – too much shoddy stuff going on. Looks like companies in India do not believe in disclosure. If it is there it is convoluted. (2) majority of companies are personality driven, rules can be easily bent to suite company needs; (3) lack of ability to invest in India’s market. There are no good investment vehicles. I personally, do not consider MFs as good vehicles. ADRs are only few. So what does a US investor do? May be US based ETFs? Refer this post http://www.dividendtree.net/analysis/epi-best-among-all-of-india-focused-funds/ Manshu,
I agree with your view of BRIC label does not make sense. Each country is different and they work in different way. This is again one off wall street investment firms creation (think GS!). On a personal note, I am most bullish on Brazil/India markets. Demographics and internal consumption is in their favor. However, I find Russia/China to be having similar ambitions with different execution method. China wants go economic supremacy way, while Russia wants to go military way using its natural resources. On the other hand India/Brazil are following more or less similar approach of demographics/internal consumption way (and both do not aspire for world dominance, perhaps only recognition).

I do not know about Brazil, India is surely a volatile market, but if one has 10+ year of horizon, India is the way to go. In case of India, the big risk for US investors is (1) lack of correct information – too much shoddy stuff going on. Looks like companies in India do not believe in disclosure. If it is there it is convoluted. (2) majority of companies are personality driven, rules can be easily bent to suite company needs; (3) lack of ability to invest in India’s market. There are no good investment vehicles. I personally, do not consider MFs as good vehicles. ADRs are only few. So what does a US investor do? May be US based ETFs? Refer this post http://www.dividendtree.net/analysis/epi-best-among-all-of-india-focused-funds/

]]> By: Manshu http://www.dividendtree.net/commentary/reframing-dividend-investing/comment-page-1/#comment-144 Manshu Thu, 11 Jun 2009 21:18:15 +0000 http://www.dividendtree.net/?p=699#comment-144 In the time to come, the wisdom of emerging markets being risky will be tested. People will realize that the markets may be more volatile but are certainly not riskier than other markets. The risk is that you create a label like BRIC and then treat Russia and China in the same way. That makes no sense. In the time to come, the wisdom of emerging markets being risky will be tested. People will realize that the markets may be more volatile but are certainly not riskier than other markets.
The risk is that you create a label like BRIC and then treat Russia and China in the same way. That makes no sense.

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