While I was gone, one of the best things I ever read about emerging markets was done by my colleague Ben Carlson, writing for Bloomberg View. One of the stats that was really surprising to me:
Emerging markets are highly volatile. Going back to the inception of the MSCI EM Index in 1988, 76 percent of all annual calendar returns have been double-digit gains or losses. Also, almost half of all annual returns in that time were either gains or losses in excess of 20 percent. In that same period, the volatility of emerging-market stocks has been double that of their U.S. counterparts. Investing in emerging markets requires sitting through bone-crushing volatility most of the time, with higher highs and lower lows than more mature markets.
So three quarters of the time, EM is making investors feel like either geniuses or fools!
Make sure you catch the whole thing. This is really well done.
I don’t know who your advisor is, but we work really hard at this stuff. Talk to us today if you need a hand: