Source: www.stuff.co.nz

The emerging markets now account for half the world's economy by some measures. John McCrone reports on how investors can play the globalisation game.

The first rule of sound investing is don't put all your eggs in one basket. So if you were investing $100, how much of it ought to go into New Zealand shares?

Well, if you weight your portfolio for New Zealand's size on the world stage, just 16 cents. All our listed companies added together total barely one-sixth of 1 per cent of the world sharemarket. Toss Australia into the equation and it would still be only $1.21. On the other hand, the figures say, $50 - or half your stake - should go into the emerging markets, such as the four ''Bric'' nations of Brazil, Russia, India and China. And given the rate at which these emerging markets are emerging, 50 per cent might be on the light side.

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Posted by pichu at November 21, 2006 4:24 PM