Investors seeking out undervalued opportunities abroad should look to Vietnam and India to boost returns and get entrance into emerging and frontier markets to help diversify portfolios, says one expert.
"You want to target areas that have a strong emerging middle class," said Rob Lutts, president and chief investment officer of Cabot Wealth Management, which has $546 million in assets under management. "If I can invest in something and double my money over the next three or four years, that's where I want to be."
"Emerging markets have been an area investors have shunned lately, with lower weightings than in the past," Lutts added. "I've always been attracted to emerging and frontier markets because of their solid growth rates."
Vietnam is overlooked
Vietnam is an overlooked market, stuck in the shadows of China, Lutts said, but it has a lot going for it.
"Vietnam has capital markets that are more into the mainstream and they're benefiting from problems the Chinese are having," Lutts said. "China has a lot of companies that don't want to do business there or the government has made it more difficult to do business there."
Most recently, Netflix (NFLX) CEO Reed Hastings said it wasn't likely that the streaming service would enter the world's most populous country anytime soon. "It doesn't look good," Hastings said at a recent tech conference. "We're figuring our way out (in China), but we're really focused on the rest of the world. There is so much opportunity for us in India, Poland, Turkey and Latin America and Vietnam."