Investors Pivot from Russia to Emerging Economies

With Russia no longer a market that investors can enter since the invasion of Ukraine, other emerging economies have started to take on new appeal.

Several major US index providers have removed Russian stocks from their indexes. Trading shares of several leading US-listed Russian companies, such as search engine Yandex and telecom MTS, has been stopped. Russia’s stock exchange closed the day after the invasion began.

For many years, some of the world's most popular emerging markets have been the so-called BRICS countries: Brazil, Russia, India, China and South Africa.

With Russia no longer an option, investors are starting to look for value in other areas. Many investment houses are receiving numerous enquiries for new destinations in which to invest. 

Analysts are lining up to talk about the value in places such as Taiwan and South Korea, with Poland, Turkey and Mexico also providing interest from a consensus of investment advisors.

What does this mean for me? 

Traders should be looking for diversification. New investors are being encouraged to look beyond acronym-based investing and search for extra value down less popular avenues. Other experts argue that investors should be paying closer attention to individual companies in emerging markets and less to the countries themselves.

If you are an investor with an interest in emerging markets, this could be the time to venture into markets and individual stocks that you do not know much about.