The US debt rating downgrade was not a surprise but came at a time when investor confidence was already low. Though emerging markets digested that information and discounted it quite well but overall impact on emerging economies especially BRICs nations would be to a some extent. Markets could face short-term jitters as and when any negative news floats but long-term scenario for the emerging markets is under the shelter.
Japan is under the stormy phase but Japanese companies are in the wave of posting healthy quarterly results with positive surprises outnumbering negatives in their full-year earnings projections.
China is relatively strong and in a better position than its global peers. Though it is struggling to combat its inflation but that's a conventional problem and it shows some signs that inflationary pressure may now be under control if global oil prices continue to fall.
Though it's not easy for main street investors to get direct access to emerging markets but there are number of mutual funds which invest in emerging market funds. Few of them have been listed below:
- Sundaram Global Advantage Fund
- Principal Global Opportunities Fund
- Fidelity Global Real Assets Fund
- DSPBR World Energy Fund
If you wish to invest in global commodities fund or gold funds, then you can invest in any of the below:
- AIG World Gold
- DSPBR World Gold Reg
- ING OptiMix Global Commodities
P.S. - While selecting a mutual fund it is vital to look at the Expense ratio along with its past returns.