2013-02-26 17:46:46 -
Sonata Financial suggests high yield emerging stock markets for growth and global exposure.
While investors were happy with their double digit gains from the S&P 500 in 2012, other markets around the world fared much better, and those willing to take on the perceived risk of foreign investment did very well. Some of these more obscure markets benefited from an influx of foreign investment or inflation, while others were driven purely by healthy economic growth.
In recent years seasoned western investors have sought alternative markets for higher returns, and for the most part have been very successful doing so. In 2012 the top 10 performing markets from around the world averaged a 67% return, admittedly bolstered by Venezuela’s 302.8% performance.
As these emerging economies develop and their stock market performance draws attention, international investors will
flock to the higher return opportunities for portions of their portfolios. Though it would not be advisable to bet your retirement on any of these markets, Sonata Financial believes that there are certainly high yield, moderate risk opportunities in dozens of the world’s emerging stock markets.
The markets listed below offer an example of the tremendous opportunity for growth in the coming years. Following is a list of the top performing markets in 2012.
10. Philippines PSE: 33.0%
9. Nigerian Stock Exchange NSE: 34.4%
8. Laos Composite LSXC: 35.1%
7. Thailand SET: 35.8%
6. Estonia Tallinn OMX: 38.2%
5. Kenya NSE: 39.3%
4. Pakistan KSE: 49.3%
3. Egypt EGX 30: 49.6%
2. Turkey XU100: 53.3%
1. Venezuela IBC: 302.8%
It is important to note that investment in unknown markets can be very high risk without in depth knowledge of the country, local laws and regulations, index, individual stocks and political climate. Sonata Financial does not advise novice investors to do so on their own, but is merely pointing out the opportunity. Before investing in unknown foreign stocks, please consult with a trusted financial advisor.