Frontier Markets: Meet the CIVETS

Yes, another stupid acronym for the “next” BRIC nations.  It’s fine at this point, the quality of the information from this research allows me to overlook the hokeyness.

From Knowledge@Wharton:

Building on the foundation of the well-known BRIC countries — Brazil, Russia, India and China — a new set of up-and-coming emerging markets is gaining attention. The so-called “CIVETS” countries — Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa — are now touted as hot markets because they have diverse economies, fast-growing populations, relatively stable political environments and the potential to produce outsized returns in the future.

I’ve written here extensively about my Frontier Markets theme; I’m a long-term investor along with my clients in several relatively obscure ETFs in order to catch these countries before they become darlings.

I prefer the index approach to picking individual foreign stocks because although I may give up single-company upside, I am gaining the safety of diversification.  Besides, when a nation (and its market) is being flooded with investor capital from around the world, that flood creates the proverbial rising tide environment in which you can pretty much own anything.

Let’s look at the CIVETS themselves before I send you over for the rest:

Each of the CIVETS presents opportunity and risk, according to emerging market analysts and Wharton faculty:

Colombia: Following years of high-profile drug wars, Colombia remains a small market, but has always been a dynamic economy with some key industries, including fresh flowers, oil and coffee.

Indonesia: The largest of the CIVETS, Indonesia has a huge, sprawling population and has already benefited from investment by the U.S., China and Japan, but political and social stability is never certain.

Vietnam: A low-cost alternative to China for manufacturing, Vietnam has ambitious plans to grow its economy despite a Communist government.

Egypt: Although Egypt has a well-educated, prosperous population in its Nile Valley cities, much of the country remains poor and the country has a high level of debt (80% of GDP). The political future beyond the rule of President Hosni Mubarek is cloudy, and the country could face religious turmoil.

Turkey: Not a destination for manufacturing because costs are already high, Turkey remains a promising regional center which has benefited from relative stability and ties to the West in a volatile part of the world. Membership in the European Union would be a plus, experts note, but religious turmoil might hurt its economic prospects.

South Africa: Although it faces problems with unemployment and HIV/AIDS, South Africa has strong companies, a well-developed business infrastructure and can serve as a gateway to southern Africa.

I find it interesting that Poland and Chile, two frontier markets that have been exceptionally good to me, aren’t on this list.  I also think the inclusion of Egypt may require a bit of rethinking.

Some interesting insights at the link below…

Source:

The New BRICS on the Block: Which Emerging Markets Are Up and Coming? (Knowledge@Wharton)

Read Also:

Frontier Markets on TRB

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. eatverts commented on Sep 22

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]

  2. pinewswire.net commented on Sep 23

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]

  3. What is the Bitcoin loophole? commented on Sep 25

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]

  4. blazingtraderapp.com commented on Sep 27

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]

  5. Bitcoin Era Review commented on Sep 28

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]

  6. pick & mix sweets commented on Sep 29

    … [Trackback]

    […] Here you will find 31317 additional Information to that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]

  7. Sex chemical commented on Oct 29

    … [Trackback]

    […] Find More here on that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]

  8. DevOps commented on Dec 10

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]

  9. fake watches commented on Dec 17

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]

  10. 토토사이트 commented on Dec 24

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]

  11. wigs commented on Jan 21

    … [Trackback]

    […] Find More on to that Topic: thereformedbroker.com/2011/01/30/frontier-markets-meet-the-civets/ […]