sumflow's Blog : Emerging Markets

All things change everywhere. The fastest growing companies, in the fastest growing economies, are what these funds are designed to accumulate when prices fall during a crisis. Closed-end funds are the ideal form to own Emerging markets. Your managers should not have to be dealing with redemptions right when they should be buying, and not stuck in a lot of junk like slow-managed indexes.

Don’t be overly concerned with net asset value. NAV is something managers use to gage themselves and earn their fees.

The price of Emerging market funds like EMF or MSF is the discounted value of the anticipated future stream of earnings. You own the future earnings of the fastest growing companies in the fastest growing countries in the fastest growing economies. Some day these areas will all become developed and these opportunities will exist no more. Owning Emerging markets is like going to the fringe of any major city and buying land by the acre that you will later resell by the square foot.