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With everyone bullish onemerging market investing, shouldI be more careful?By Kurt Meyer

The Meyer, Pickens, Turner Wealth Management Group at Morgan Stanley Smith BarneyKurt Meyer, CIMA®, Financial Advisor, Pamela Pickens, Financial Advisor,Ryan Turner, CFA®, Financial Advisor

Los Angeles, CA—Tempe, AZ Leading Wealth Advisor

Ask investors what countries aroundthe globe have the fastest-growingeconomies with the greatest growthpotential, and most will reply correctly:emerging markets. Then ask whatpercentage of their portfolios theyinvest there.

Considering that emerging coun-tries represent more than 30 percentof world GDP, the average investormay be significantly underweight.We believe the emerging markets willcontinue to be a profitable place to invest. These countries have produced a whole new middle class ofyoung, educated citizens who areabout to embark on a consumptionbinge that will last for decades.

However, the easy money has beenmade over the past decade whenthese countries were less mature andcarried greater risk. Many investorshave typically shied away from theseinvestments in the past, but now thatthe emerging market indexes haveaveraged a 14 percent annualized return for 10 years everyone wants in.

Prudent investing in emerging marketsgoing forward must include a few tactical guidelines.

One simple guideline is to be patientand buy when these markets havesome major sell-o�s. Emerging marketstend to exhibit higher volatility andoffer good entry points. However, mostinvestors question their long-terminvestment strategy when stocks fallin price. It scares them and makesthem uncertain. We suggest you usethese periods of decline to increaseyour exposure.

Emerging markets offer more investment choices than just stocks.One of the most overlooked areas ofinvestment is bonds. These havehad spectacular returns over the pastdecade; and, after a correction, wecontinue to see value in this assetclass. Investors should also be aware ofwhether their bonds are dollar denomi-nated or local-currency denominated.

Focus on commodity-based countries.The resources around the globe are limited, and as the world population

grows, the competition for resourceswill become dramatic and ultimatelypropel commodity prices upward.

Look for non-emerging marketstocks that have exposure to the mega-trends within the emerging markets.Many multinationals will benefit strate-gically from growth in the emergingmarket economies. Therefore, owningthese stocks may not only be profitablebut may often be purchased at morereasonable valuations. Be selective andlook for the boring big companies thatwill o�er slower consistent growth witha dividend payment.

Lastly, be receptive to investing incountries you may have a bias againstjust because of the name. Some ofthe nations with the greatest relativestrength in their markets are ones mostinvestors have never studied.

We believe investors should becareful, given the popularity of theasset class. However, if an investorfollows a few tactical guidelines, bothemerging market stocks and bondsmay offer positive returns.

International investing may not be suitable for every investor and is subject to additional risks, including currency fluctuations, political factors, withholding,lack of liquidity, the absence of adequate financial information, and exchange control restrictions impacting foreign issuers. These risks may be magnified inemerging markets.

The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Smith Barney or its a�liates. All opinions aresubject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.Past performance is no guarantee of future results.

This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances andobjectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Morgan StanleySmith Barney LLC recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of afinancial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

© 2011 Morgan Stanley Smith Barney LLC, member SIPC.

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063W O R T H . C O M F E B R U A R Y- M A R C H 2 0 1 1

– Kurt Meyer

Assets Under Management $400 millionMinimum Fee for Initial MeetingNone required Minimum Net Worth Requirement$5 millionLargest Client Net Worth $1.5 billionFinancial Services Experience45 years (combined)

Compensation Method Asset-based fees and commissions (investment and insurance products)Primary Custodian for Investor AssetsMorgan Stanley Smith BarneyProfessional Services ProvidedPlanning, investment advisory and money management servicesAssociation MembershipsCFA Institute, Investment Management Consultants AssociationEmail Phonekurt.e.meyer@smithbarney.com 480.345.4712

About the Meyer, Pickens, Turner Wealth Management GroupThe Meyer, Pickens, Turner Wealth Management Group provides family office wealth management and investment services to ultra high net worth investors. Kurt Meyer attended UCLA and Arizona State University,receiving a BS in finance. He began his career as a financial consultant with Merrill Lynch in 1986. He joinedSmith Barney, now Morgan Stanley Smith Barney, in 1988. He is a member of the Director’s Council, whichacknowledges the top 5 percent of financial advisors at Morgan Stanley Smith Barney. Pamela Pickens worksfrom the Newport Beach, Calif., office. She began her career with Morgan Stanley Smith Barney and predecessor firms in 2000. She is a member of the Investment Management Consultants Association and isa liaison for energy advocates, given her close ties to her father, T. Boone Pickens. Ryan Turner attended theUniversity of Notre Dame where he graduated with a BA in finance and captained the soccer team. In 1999,he joined Morgan Stanley Smith Barney.

660 Newport Center Drive, Suite 1100, Newport Beach, CA 9262580 East Rio Salado Parkway, Suite 810, Tempe, AZ 85018

“Prudent investing inemerging markets goingforward must include a fewtactical guidelines.”

How to reach the Meyer, Pickens,Turner Wealth Management GroupWe would love to hear from you. Please call us at480.345.4712.

The Meyer, Pickens, Turner Wealth ManagementGroup at Morgan Stanley Smith Barney

Kurt MeyerPamela Pickens

Ryan Turner

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R E P R I N T E D F R O M

THE EVOLUTION OF FINANCIAL INTELLIGENCE

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About the Worth Leading Wealth AdvisorsThe Worth Leading Wealth Advisor admittance process is based on, but not limited to, the Advisor’s experience, education, fiduciary status, compliance record, wealth management services,methods of compensation and scope of current business. In order to be considered for the Worth Leading Wealth Advisors Program, financial professionals must be willing to provide completeand full disclosure to investors so that independent analysts from Paladin Registry can thoroughly screen and evaluate their credentials, ethics and business practices. Once admitted,Advisors pay a fee to be included. Investors and potential investors are solely responsible for the decision to select particular Advisors.

Kurt Meyer, CIMA®Financial Advisor

Pamela PickensFinancial Advisor

Ryan Turner, CFA®Financial Advisor

The Meyer, Pickens, Turner Wealth Management Group at Morgan Stanley Smith Barney

660 Newport Center DriveSuite 1100

Newport Beach, CA 92625

80 East Rio Salado ParkwaySuite 810

Tempe, AZ 85018

Tel. 480.345.4712

Email: kurt.e.meyer@smithbarney.com