Invest in emerging markets without buying EM stocks

I guess there is no need to say too much regarding why the emerging markets (EM) are the most attractive and profitable areas to make money. Led by China, these economies are the locomotives for the world economy. They have the money and consumers with low labor costs to support the high speed of their economic growth. On the other hand, it is also well known that EMs are very volatile since they are at an early stage of the development and therefore their policies and financial systems may not be very well established and can be changable and unpredictable. Directly investing in the EM's stocks can be risky.

 

However, there is a way by which you may directly benefit from the economy growth in the EMs but without having to buy EM stocks. This is purely a US company dominated in the retail market. This company is an irresistible (or at least unavoidable) retail force that has yet to meet any immovable objects. Bigger than Europe's Carrefour, Tesco, and Metro AG combined, it's the world's #1 retailer with 2.1 million employees in more than 8,400 stores, including about 800 discount stores, 3,100 combination discount and grocery stores in the US and ASDA in the UK, and 595 Club warehouses. The company's international division (25% of sales) is growing at a fast pace; it's the #1 retailer in Canada and Mexico and it has operations in Asia (where it owns a 95% stake in Japanese retailer SEIYU), Europe, and South America. By now, you must know which company I'm talking about. Yes, it is WalMart! This is the superpower which can make money almost anywhere. Most recently it has just announced that is will open stores in South Africa. By investing in Walmart (WAL), it is gauranteed that you are significantly exposed to the EM markets and take the advantage of their speedy growth and make money along with the success of Walmart. The other beauty of buying WAL is that it is very cheap (even in this crazy market), a great dividend gusher and very stable in bearish markets. Actually it was one of very few companies which made money in the stock market in the worst recession in 2008-2009 after the Great Depression. I really like Walmart and it is one of few buy-and-hold type of stocks in my portfolio.