CHAPTER NINE

 

                      The Self-directed Approach: Actively Managing

                                     Your Emerging-Market Portfolio

 

---

Pitfalls of the Self-directed Approach

 

Gearing Up

 

Seven Investment Tips

Tip 1: Look at Regions, Not Companies

Tip 2: Use Price-Earnings Ratios and Dividend Yields to Find Investment Bargains

Tip 3: Overweight Markets with Low Pr-ice-to-Book-Value Ratios

Tip 4: IA'atch Out for False Bargains

Tip 5: Buy Stocks in Countries Where Political Risk Is Subsiding

Tip 6: Trade as Little as Possible

Tip 7: Prune Your Hedges Severely

 

Some Final Advice