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2013 Emerging Markets Forecast: Forget About the BRICs Buy These Rising Stars Instead

Savvy investors know there is far more to the markets than sitting on your hands worrying about the fiscal cliff.

Believe it or not the world doesn't revolve around the United States-or the Western world.

In fact, The IMF's World Economic Outlook projects an emerging markets forecast with growth at 5.6% in 2013. That's down slightly from 2011 but far ahead of the measly 1.5% growth projected in the "advanced" economies.

That means investors need to focus heavily their investments in emerging markets, as we have done successfully over the past few years.

However, there's one new trick investors will have to learn going into 2013: the BRIC economies (Brazil, Russia, India and China) that have been so fashionable over the years, will all run into trouble next year and should be avoided.

The good news is the world is a big place and there are still emerging markets that offer investors the benefit of the world's fastest economic growth. My favorites are listed below.

Join the conversation. Click here to jump to comments…

  1. McGillycuddy | November 14, 2012

    Please note that the BRIC economies now include (for better, for worse, for richer, for poorer!) SOUTH AFRICA.
    I hope that MONEY MORNING has really down to earth (grass roots) sources reporting on South Africa. A revolution started a few months ago and is spreading rapidly throughout industries. Marikana was one thing. Half as many people are killed on the roads every week. Casual farm workers are torching vineyards in Western Cape whilst striking for higher pay. They and many others don't seem to realise that one-in-four of the employable population is unemployed already. The last 2 months trade deficit is R25bn as foreign goods pour into the country and precious little is going out. Fracking is to commence in the Karoo at great FDI cost and it will be years before SA reaps the benefit (after the politicians have had their 'cut'). Investment in racehorses is the brightest star of the SA economy. The average value of a Ready-to-Run colt or filly has increased 379% over 10 years, 47.4% over 2 years and 28.7% in the last year. Many are American bred!

  2. dourdan | November 14, 2012

    my grandmother was born in the phillipines to irish american parents

  3. Jim | November 14, 2012

    You don't mention Malaysia, but I think if one looks at their natural resources (including a horde of oil), per capita income, low debt to GDP and close proximity to so many developing countries he/she might want to keep this one on their radar.

  4. david | November 18, 2012

    God Bless the Philippines. A country of 100million people (10million is living overseas) with an average age of 23.5, skilled and highly educated people, the investors should take this opportunity. There's so many business that could be built in a country of 7,107 islands.

  5. ian | November 19, 2012

    Philippines… Undoubtedly, yes it is! Hope all these will pursue and may God bless the Philippines.

  6. pad'enaco | November 19, 2012

    Bingo, Martin. Brazil is meddling with PBR, to the extent that it gives the impression they want it to be a government owned entitiy for which the outside stockholders only have to cover the losses. This is inherently a good company, a great franchise, and, with the right equipment, a superb future for deep-drilling off its coast. Argentina gives the same impression with how they have handled YPF which was a far more interesting story a few years ago than it is today. So, I agree with you on Chile, its primacy in being run effectively, having a respected banking structure (from the ones I have looked at) and did you mention the wines? Keep up the good work.

  7. jep | November 19, 2012

    Now is the best time to invest in the Philippines, the economy is one of the fastest growing economy in Asia, the only country who got upgraded by the International Monetary Fund by year 2012 – 2013, one of the breakout nation, low interest rates, the "Call Center Capital of the World" outperformed India, Manila, it's capital ranks first as $287 billion economy in South East Asia, Home of brilliant hardworking, resourceful, multitasking and English speaking labor force at very competitive cost. The so called and expected to be the Asia's leading "Tiger Economy". And most of all the business friendly government as it is doing reforms in making business more easier and more fun in the Philippines

  8. Ali Fitzpatrick | December 11, 2012

    just interested

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