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Is it wise to give Chavez your cash?


Hugo Chavez with Lula and Alvaro Uribe

Hugo Chavez with Lula and Alvaro Uribe

How would you feel about lending money to Hugo Chavez, Venezuela’s left-wing firebrand president? Or maybe writing a cheque to the government of Iraq? Lending to governments in emerging markets can be profitable – but it’s not without risk.

In fact, strange as it may seem, lending money to emerging markets by investing in government bonds might actually be a better bet over the next decade than giving it to the heavily indebted nations of the Western world.

Richard House, who runs Threadneedle Emerging Market Bond Fund, has bonds issued by Russia, Venezuela and Iraq within his top ten fund holdings. These sit alongside investments from Brazil, Turkey and Hungary.

Read more: http://www.dailymail.co.uk/money/article-1250753/Is-wise-Chavez-cash.html#ixzz0fzt8jQRX