Interview with Richard Kang, TheBetaBrief.com
04/18/2008 12:00 am EST
Kang joined us in Las Vegas to talk about international markets. He likes emerging markets, particularly defensive stocks in the BRIC regions. He also prefers investing in sectors instead of countries, particularly in some of the oil companies in Russia and Brazil, as well as businesses in the basic materials and infrastructure sector. He's not a fan of emerging markets funds, but instead recommended that investors look to ETFs, as well as US firms that have exposure in those areas. View the complete interview Emerging Markets-Accept the Risk.
However, Kang did comment and caution, somewhat, on the fees that are sure to rise with the introduction of actively-managed ETFs. He sees a convergence, down the road, with ETFs becoming more specialized, hedge funds going toward a more passively-managed strategy, and mutual funds somewhere in the middle. View the complete interview Actively Managed ETFs?
Kang also told us that investors need to understand the various risks in foreign markets, including the lack of liquidity and volatility. One of the biggest mistakes made by investors is concentrating on returns, which causes them to chase prices. He suggested that investors would do well to just acknowledge the risks and learn how to hedge it. View the complete interview Risk not Return