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Morals and Investing in Emerging Markets

96K views 66 replies 16 participants last post by  londoncalling 
#1 ·
Hello All,

I am trying to nail down an asset allocation for myself. So far I have got it mostly down (North american markets, developed markets, some canadian bonds, some canadian high dividend stocks). Recently I was reading a book called smarter investing. It talked about adding in the emerging market to your asset allocation because there is lots of future growth estimated to be there. Also, developed markets are expected to not average as much returns as they once did. That is just a prediction but something I am hearing from various sources.

Now I am open to getting an ETF that tracks emerging markets but one thing is stopping me. I keep hearing about corruption in the developing nations, human rights issues, lack of freedoms etc. I wanted to know how other investors saw the emerging markets. Now do not get me wrong. I am not boyscout but I was just interested in how others see it. Do you see it as just another opportunity get more returns year over year or do you see yourself somehow facilitating the negative things that are going on around there? Do you think people will invest regardless of the issues there or are people actively boycotting those markets?
 
#38 ·
@james4beach :Certain chinese companies getting banned seems similar to what another user said. Yes for now I am glad I did not go into emerging markets.

@MrMatt : What do you mean when you say india benefits from european influence? I am not too familiar with their market situation. Are you talking about european companies being in india? Also, I am invested in BNS as well. i was unaware they introduced racial quotas. Sounds like they are just pandering.

@dcris07 :That is interesting. I have not heard of those at all. I agree a bit with others it may be getting a bit political and just made for people in a niche but I will look more into it.

@Tostig :Can you elaborate on what kind of ethic/moral issues are there with those companies listed? I shudder thinking about LTC homes. I would not get into them at all as it seems like bad idea from a moral standpoint and a investing standpoint because of all the deaths and lawsuits happening right now but am open to seeing things differently.

@tradesviz :Yes that is for sure as well. I feel like it would be quite difficult for a company to cultivate a global image of themselves while their internal polices and employees are vastly different. When there is a disconnect sometimes it rises to the surface. I am thinking of blizzard employees getting upset with the company when the started censoring/banning hong kong players because of China's influence.
 
#39 ·
@MrMatt : What do you mean when you say india benefits from european influence? I am not too familiar with their market situation. Are you talking about european companies being in india? Also, I am invested in BNS as well. i was unaware they introduced racial quotas. Sounds like they are just pandering.
India has Common Law and a Parlimentary system, heavily informed by the relevant English systems.

I agree they're just pandering, but I think any systematic discrimination is repugnant.
 
#51 ·
Just saw this in my inbox

On January 11, 2021, prohibitions arising from Executive Order 13959 (“the Order”) related to investments in certain Chinese companies become effective. Pursuant to these prohibitions U.S. persons, and entities that are deemed U.S. Persons for purposes of the Order, may not transact in the publicly traded securities of certain Chinese companies identified by the Secretary of Defense and the Secretary of the Treasury, or any securities that are derivative of, or are designed to provide investment exposure to such securities. Derivatives include ETF’s that contain any of the prohibited companies as a component. As such, the below securities will be halted from trading and there may be no ability to sell these shares after market close on January 7th.​
Ticker EXCH_CODE CNTRY_OF_DOMICILE LONG_COMP_NAME​
AVITF OTC US HK AVIC International Holding HK Ltd​
AVIJF OTC US CN AviChina Industry & Technology Co Ltd​
CGEGF OTC US HK CGN New Energy Holdings Co Ltd​
CGNWF OTC US CN CGN Power Co Ltd​
CHAEF OTC US HK China Aerospace International Holdings Ltd​
CCCGF OTC US CN China Communications Construction Co Ltd​
CCCGY OTC US CN China Communications Construction Co Ltd​
CJNHF OTC US HK China Jinmao Holdings Group Ltd​
FRSHY OTC US HK China Jinmao Holdings Group Ltd​
CHL New York HK China Mobile Ltd​
CHLKF OTC US HK China Mobile Ltd​
CAOVY OTC US HK China Overseas Land & Investment Ltd​
CHA New York CN China Telecom Corp Ltd​
CHJHF OTC US CN China Telecom Corp Ltd​
CHU New York HK China Unicom Hong Kong Ltd​
CHUFF OTC US HK China Unicom Hong Kong Ltd​
CEO New York CN CNOOC Ltd​
CRCCY OTC US CN CRRC Corp Ltd​
CRRRF OTC US CN CRRC Corp Ltd​
DIPGF OTC US CN Datang International Power Generation Co Ltd​
DIPGY OTC US CN Datang International Power Generation Co Ltd​
ELKEF OTC US NO Elkem ASA​
FEHZY OTC US HK Far East Horizon Ltd​
FEZHF OTC US HK Far East Horizon Ltd​
INPRF OTC US HK Inspur International Ltd​
KHDHF OTC US DE KHD Humboldt Wedag International AG​
NJGPF OTC US CN Nanjing Panda Electronics Co Ltd​
PLLIF OTC US IT Pirelli & C SpA​
PRLLY OTC US IT Pirelli & C SpA​
DEIPY OTC US BR Rio Paranapanema Energia SA​
DEIWY OTC US BR Rio Paranapanema Energia SA​
SIUIF OTC US CN Semiconductor Manufacturing International Corp​
SMICY OTC US CN Semiconductor Manufacturing International Corp​
SNFRF OTC US HK Sinofert Holdings Ltd​
SNFRY OTC US HK Sinofert Holdings Ltd​
 
#57 ·
Imagine that the year is 1935 and the world has learned that Germany has concentration camps, and is exterminating Jews. At the same time, there are very strong business conditions in Germany, especially among businesses which cooperate with the Nazis. The stocks perform well, and many capitalists shrug off the moral issues.

Question: would you hold onto your German stocks? Should you have held them? There was no war at the time... they were legal, and very lucrative.

Today, the emerging market ETFs have a huge weight in China. We've known for about 1-2 years now that China also has concentration camps, and the US just determined that the Chinese government is committing a genocide against Uyghurs. This is a very strong statement that is likely to have many consequences in the coming months and years.

I think it's a serious concern. Again this is why I stay close to home turf, with concentration in US & Canada (allies).
 
#67 ·
BlackRock says it has more than $800 million for new impact fund (msn.com)

I also watched a presentation from TDAM this week on environmental investing. It was not the marketing session I was expecting but talked about the environmental impact of environmental investments. One presenter suggested that oil companies are holding back on capital investment to deploy into whichever renewable offers the greatest opportunity.
 
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