Emerging market investments are great options for use in asset allocation investment programs. Many asset allocations only look at "international" investments,like Europe and Asia, but they do not use emerging markets.
This can be a costly mistake, as asset allocation depends on using investments that are not correlated to each other. Most developed international investments (like Europe, Far East, Asia, etc) behave in a like manner. If the market goes up they all tend to move the same way. But with emerging market investments (ETFs, mutual funds, commodities, hedge funds), you may find that those markets move in opposite direction.
In 2008, this would have helped investors as most international returns were down. Many over 50% (including China). Having these investments in your portfolio would not have benefited you much. Astute investment advisers, however, may have used a certain percentage of emerging market securities in their allocations. And depending on their selections, returns would have fared better - probably still losses, but higher returns nonetheless.
Tuesday, February 17, 2009
Saturday, January 24, 2009
Emerging Markets Investments
Welcome to the Emerging Markets Investments blog. We created this resource for both financial professionals looking for the latest investment news on emerging markets, as well as the casual investor that may be looking at these investments to add to his portfolio.
Emerging markets cover a wide range of investments from hedge funds to mutual funds to even commodities. Many investors do not even know the definition of Emerging Markets, let alone how to go about actually buying an appropriate investment for their account. We will try to dispel myths, as well as point out investment opportunities.
The Emerging Markets themselves have evolved as some countries are no longer considered emerging (India, China, Brazil, among other). And additional countries have developed stock markets where none previously existed. Countries such as India, even have hindu based investments for those practicing that religion. Their is a whole other world out there!!
Emerging markets cover a wide range of investments from hedge funds to mutual funds to even commodities. Many investors do not even know the definition of Emerging Markets, let alone how to go about actually buying an appropriate investment for their account. We will try to dispel myths, as well as point out investment opportunities.
The Emerging Markets themselves have evolved as some countries are no longer considered emerging (India, China, Brazil, among other). And additional countries have developed stock markets where none previously existed. Countries such as India, even have hindu based investments for those practicing that religion. Their is a whole other world out there!!
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