Six Sizzling Markets

In Six Sizzling Markets, seasoned financial veteran Pran Tiku lays out a detailed and balanced case for investing in the emerging economics of Brazil, Russia, India, China (BRIC), South Korea, and Mexico. Along the way, he analyzes each nation’s investment opportunities on the basis of eight tenets and takes a detailed look at the most lucrative industries within those countries. Filled with in-depth insights and expert advice, Six Sizzling Markets can help you profit from promising emerging world markets.

Preface vii

Acknowledgments ix

Introduction 1

CHAPTER 1 Why Invest in These Six Sizzling Markets? 13

CHAPTER 2 Passion and Paradox: The History of Brazil 25

CHAPTER 3 The Real World: Brazil from 1994 to Today 33

CHAPTER 4 A Land of Opportunity: Investing in Brazil 41

CHAPTER 5 Catching up with the West: The History of Russia 57

CHAPTER 6 Blind Turns and Growing Pains: Russia from 1998 to Today 69

CHAPTER 7 Resources to Rubles in a New World Economy: Investing in Russia 79

CHAPTER 8 A State of Mind: The History of India 95

CHAPTER 9 Shadows to Sunshine: India from 1991 to Today 107

CHAPTER 10 Power in Numbers: Investing in India 111

CHAPTER 11 Tradition, Truth, and Transformation: The History of China 149

CHAPTER 12 Calculated Conduct: China from 1978 to Today 159

CHAPTER 13 Manufacturing a Future: Investing in China 169

CHAPTER 14 A Peninsula of Perseverance: The History of Korea 195

CHAPTER 15 A Blessing in Disguise: Korea from 1993 to Today 205

CHAPTER 16 High Profits in a Tricky Neighborhood: Investing in Korea 211

CHAPTER 17 Revolution and Exclusion: A History of Mexico 229

CHAPTER 18 Democracy and a Free Economy: Mexico from 1994 to Today 243

CHAPTER 19 The Second Mexican Independence: Investing in Mexico 249

CHAPTER 20 Tips for Investing in the Six Sizzling Markets 263

APPENDIX A Country Profiles 269

APPENDIX B World Economic Forum’s Global Competitiveness Index for the Six Sizzling Markets 283

APPENDIX C Governance Indicators 287

APPENDIX D American Depository Receipts (ADRs) 291

APPENDIX E Mutual Fund Profiles by Country 327

APPENDIX F BRIC Fund Profiles 337

APPENDIX G Just Ask the Experts 341

Bibliography 351

Glossary 357

Index 367

Pran Tiku is founder and Principal of the financial planning firm Peak Financial Management, Inc., and has offered investment and gen-eral financial planning advice since the firm was founded in 1991. In 2007, Tiku was named as one of Worth magazine's top 100 national financial advisors for the fourth consecutive year. He has twice been recognized by Medical Economics magazine as one of the best financial advisors for doctors. Tiku's investment expertise has helped his firm's clients achieve great financial success by effectively navigating through the murky waters of today's investment world. He is widely quoted in the press and appears frequently on CNBC, CNN, and NECN, among many other national and local television and radio outlets. Tiku has also written for, been quoted in, and been written about in such publications as Forbes, the Wall Street Journal, the Washington Post, and the Boston Globe.

While Brazil, Russia, India, China (whose combined economies go by the acronym BRIC), South Korea, and Mexico are currently considered emerging countries, they'll likely play a prominent part in the future world order. The ascendance of these six countries in the next decade or so will provide lucrative investment opportunities for those who are prepared to navigate the often-hazy world of foreign investing.

Nobody understands this situation better than seasoned financial veteran Pran Tiku, and with Six Sizzling Markets, he lays out a detailed and balanced case for investing in each of them, separating financial fact from fiction in the process.

Organized by country, Six Sizzling Markets introduces each nation by painting a clear picture of its historical and political landscape. It also examines the role that the country plays in today's world economic scene. With this frame of reference established, the conversation quickly turns to analyzing the nation's investment opportunities on the basis of eight tenets—demographics, economic performance, technology, open trade, infrastructure development, transparency and rule of law, education and training, and sound financial systems and policies. Rounding out each section is a detailed look at the nation's most lucrative industries, as well as specific companies within such industries that have potential to provide you with significant profits.

Page by page, as you discover the hidden growth opportunities of each country, you'll also become familiar with the sustainable investment strategies you can use to capture profits from them. And if you need more guidance for your foreign financial journey, the information-packed appendix provides some additional tools to identify investments ranging from exchange-traded funds and other mutual funds to American Depositary Receipts (ADRs) listed on U.S. exchanges.

Investors have already warmed up to the idea of international investing, as evidenced by the billions of dollars flowing annually into foreign markets. If you want to make it in this dynamic environment, you need to understand how it operates. Written in a straightforward and accessible style, Six Sizzling Markets contains the type of knowledge that goes well beyond the bottom line—putting you in a better position to consistently excel in some of the most promising emerging markets in the world.

Praise for Six Sizzling Markets

"Everyone knows that the globe is being changed by globalization, but what does it mean for the ordinary citizen or investor? Pran Tiku offers a clear and informative account of the opportunities that exist in six of the major new global economies. The book sizzles with practical advice for the would-be global investor; but, more significantly, it includes important background material on the history and politics of the six countries — material that is interesting in itself and also very practical."
—Sidney Verba, Professor of Government, Harvard University

In Six Sizzling Markets, seasoned financial veteran Pran Tiku effectively outlines how you can profit from investing in six dynamic emerging market economies: Brazil, Russia, India, and China (collectively known as BRIC), as well as South Korea and Mexico. Tiku introduces each country by painting a picture of its historical and political landscapes and quickly moves on to provide you with practical applications and profitable strategies for these markets.

This reliable resource skillfully addresses growth opportunities and describes sustainable investment strategies—based on vigorous research and investment experience—and provides a basis for investing in these markets by explaining the opportunities that are available. Six Sizzling Markets also argues that meaningful diversification is likely to reduce risk and enhance returns based on well-known principles of modern portfolio theory.

Engaging and informative, Six Sizzling Markets will educate both experienced and aspiring investors on strategies for developing their international portfolios by capitalizing on emerging market opportunities.