Some financial analysts were advocating a year or two ago that investors buy developed markets’ stocks, like those on the New York, London and Paris exchanges, in order to profit from emerging markets’ growth. This is called “EM in DM”. The idea is that you would identify good developed markets’ stocks to invest in that have a significant amount of business in emerging markets countries like South Africa, or even some frontier markets countries like Nigeria and Kenya.
But now, many analysts are advocating “DM in EM”, the thought process being that many of the emerging markets companies’ stocks are going to increase in the coming months or years; particularly those emerging markets companies that have a significant amount of business in developing countries and Africa. Companies like these would be Tata Motors (TTM), an India-based company that owns the brands Range Rover and Jaguar, as well as other automobile models and trucks . They are doing well in the developed countries, and business is growing in countries like Zambia and South Africa.
Also, Lenovo (LNVGY), the computer firm, which is a Chinese company, is in many developed markets, and is beginning to expand into Africa, with an eye on the smartphone market.
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