BY RESHMA KAPADIA
There’s a new acronym making its way around emerging-market investing circles: MIST, as in Mexico, Indonesia, South Korea, and Turkey.
It’s natural to wonder if there is any linkage between the countries other than that they make a catchy acronym. After all, some investors don’t even consider South Korea an emerging market. Its gross domestic product per capita, a common measure of wealth, is seven times that of Indonesia. But there is at least one commonality: Strategists say these markets are part of the next group of important emerging-market players bubbling up in the shadow of Brazil, Russia, India, and China—the BRICs.
The recent buzz around the MISTs is undoubtedly driven by concerns surrounding the BRICs. That, and stock performance. While the MSCI BRIC Index is down 2% this year, MSCI Turkey is up 36%. Much of that difference can be chalked up to sector composition, says Kathryn Koch, Goldman ... Read More