Understanding and Investing in Emerging markets

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Jan. 6 (Bloomberg) -- Greylock Capital Management Chairman and CEO Hans Humes and Bloomberg's Willem Marx discuss emerging markets on Bloomberg Television's "Money Moves." (Source: Bloomberg)


These pictures are amazing, and amazing.

You spent time in this region as a little guy.

Grew up there?

Right, grew up in karachi.

What are your perceptions growing up there and how the region as it evolved?

It is a vast, vast area.

It is larger than wyoming -- it is incredible.

Incredible natural resources that are untapped.

Driving through it -- very little infrastructure.

Everywhere you go, there is very little mining going on in that's one of the things that struck me in my travels.

The peace corps -- i know hanh spent a good portion of his youth there.

He chinese are there, the rainy ends are there.

Sometimes we forget here in new york city there are a lot of countries fighting to get these materials out of the ground.


Pakistan is a very good example of a place where china has worked very hard to go in and get the positions where they feel it will be beneficial to them.

The chinese mine copper and gold in the northwest of the province.

Western companies have not been able to get a look in.

I know you were in morocco, in nigeria?

Yeah, i was there, doing business there for years.

It was really impressive.

When i first started going back to africa and looking at investment opportunities, i built a hotel in liberia.

Maybe there was a french guy.

Maybe an american.

The chinese were always there.

It was interesting from an emerging market standpoint.

Your impression is so negative, but you are seeing chinese money will underpin quite a lot of development.

Their debt was paid off by the mf -- the imf.

Is there hope for stability and as you say much-needed infrastructure?

Last year was a very good year for the stock market in pakistan.

When the new government came in inmate, there is a sense of new investments opportunity.

Bail out, which will help people.

Those loans are a third of gdp over there.

Without that being addressed, investors will be quite wary dealing with this government come in not knowing where things are going.

That is looking more promising than it did a year ago.

How would something like this stack up with other positions you have taken, hans?

The yield on the long and is close to about nine percent.

I think it is actually pretty attractive.

In large part because of the fixations.

When you look at pakistan and the general impression on the street is, oh, this is sort of and untradable area.

As will mentioned, it was one of the best performing stock markets of the year.

Where would people put their money?

Brazil is the growth story.

I think the opportunity is no place like pakistan.

If you happen to have the contacts -- [laughter] it is such an opaque way to do business there.

You rely on having personal investment with government and that is what marginalizes a lot of people who do not feel like they are getting the best out of what is available to them.


Will marx joining us there.

This text has been automatically generated. It may not be 100% accurate.


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