Think of investing in emerging markets (EM), and one tends to think of commodities, and therefore the U.S. dollar. That may have been true previously, but it is no longer the case today. Commodities now account for only 15 percent of EM economies, down significantly from just a decade ago. Manufacturing and technology have grown larger as a share of the typical EM country.
James Donald serves as head of Lazard Asset Management’s Emerging Markets Equity team. He joined Lazard in 1996, and has been instrumental in developing and coordinating its emerging-markets activities.
Donald notes that Russia, Brazil and South Africa could be the most unappreciated parts of the emerging market universe. He is also intrigued by the fundamental changes taking place in India; the subcontinent may not be inexpensive, but if it manages to get past some fundamental issues, it has enormous potential. And, he observes, China will soon graduate from its status as an emerging market country.
Our conversation transcript is here; his favorite books are referenced here.
You can stream/download the full conversation, including the podcast extras on iTunes, Bloomberg, Overcast, and Soundcloud. Our earlier podcasts can all be found on iTunes, Soundcloud, Overcast and Bloomberg.
Next week, we speak with Kathy Fisher, head of wealth and investment strategies at Alliance Bernstein.
