Completely updated to include late-breaking information on changing global markets, this book introduces readers to the most exciting money-making opportunity of the 21st century. 36 illustrations.

ContentsIntroduction to the Paperback Edition: Recent Crises Present Historic OpportunitiesPrefacePART I: THE RICHES TO BE REAPEDChapter One:Investment Opportunities Flourish Outside the Developed WorldExperience from Recent InvestorsEmerging Markets Around the WorldFour Tigers: Hong Kong, South Korea, Singapore, and TaiwanThree Tiger Cubs: Malaysia, Indonesia, and ThailandOne Dragon: ChinaOne Elephant: IndiaThe Flamingos: Latin AmericaAnd All the Rest: Eastern Europe and AfricaConsumer Markets in Emerging NationsChapter Two:The Price Is Right on the Other SideStocks in Emerging Markets Are BargainsThe Home-Country Bias and the Likely Future Flows of Funds into Emerging MarketsFour Fundamental Reasons Why Rapid Growth Will ContinueEconomic Freedom Is EverywhereThe People Are Smart and ThriftyHigh Technology Has Already ArrivedThe Financial Undergrowth Is ImpressiveCould We Be Wrong?Part I HighlightsPART II: THE DANGERS TO BE AVOIDEDChapter Three:Political Instability Can Sour Many an Investment OpportunityPlaying Russian Investment RouletteActing on the World Investment StageSurvivorship BiasThe Mexican Roller CoasterA Tale of Two FliesChapter Four:Lawlessness Makes Emerging Markets a Dangerous JungleThe Pervasiveness of LawlessnessCon Artists Flourish in a World Without Legal SafeguardsMMM Meant Triple Misery for Russian InvestorsHarshad Mehta: The Invisible Hand in the Indian Stock MarketOther Complications of Emerging-Market InvestingChapter Five:Volatility Guarantees a Bumpy Investment RideTaiwan Takes Its Ups and DownsHappy Flying Crashes in ChinaThe General Evidence on Emerging-Market VolatilityWhat Is a Global Bargain Hunter to Do?Chapter Six:How Diversification Can Reduce RiskDiversification Provides ProtectionDiversification in TheoryDiversification in PracticeThe Gains from Global Diversification, 1985-1995Further Gains from Adding Emerging MarketsDiversification in the FuturePlaying the Home TeamPart II HighlightsPART III: HOW TO INVEST IN EMERGING MARKETSChapter Seven:The Professionally Managed ApproachTypes of Professionally Managed FundsPaying Full Price and More for Open-End FundsFinding Buried Treasure Among Closed-End FundsSome General Rules for Buyers of Closed-End FundsChoosing Particular Closed-End FundsTaking Risks -- and Profits -- with Closed-End Funds Traded AbroadChapter Eight:The Indexed, or Computer-Managed, ApproachThe Case for IndexingConstructing an Index: Some Important IssuesEvaluating the Efficiency of Emerging MarketsIndexing Wins AgainAvailable Index InstrumentsThe Vanguard Emerging Markets Index FundOther Index Products: World Equity Benchmark Securities (WEBS)Chapter Nine:The Self-Directed Approach: Actively Managing Your Emerging-Market PortfolioPitfalls of the Self-Directed ApproachGearing UpSeven Investment TipsTip 1: Look at Regions, Not CompaniesTip 2: Use Price-Earnings Ratios and Dividend Yields to Find Investment BargainsTip 3: Overweight Markets with Low Price-to-Book-Value RatiosTip 4: Watch Out for False BargainsTip 5: Pick Countries Where Political Risk Is SubsidingTip 6: Trade as Little as PossibleTip 7: Prune Your Hedges SeverelySome Final AdviceChapter Ten:Bargains in Bonds, Real Estate, and Natural ResourcesEmerging-Market DebtThe Case for Investing in Emerging-Market DebtHow to Evaluate Emerging-Market DebtHow to Invest in Emerging-Market BondsEmerging-Market Real EstateThe Case for Investing in Emerging-Market Real EstateThe Case Against Emerging-Market Real EstateHow to Invest in Emerging-Market Real EstateOther Investment OpportunitiesChapter Eleven:Investment Strategies and Specific RecommendationsGeneral Investment RulesRule 1: Stay CoolRule 2: Diversify BroadlyRule 3: Check Out Investment BargainsRule 4: Buy and HoldCreating an Age-appropriate PortfolioA Final WordPart III HighlightsReferencesAcknowledgments