A Simple Allocation Strategy for Including EM Stocks in Global Portfolios (The Emerging Markets Investor)
Any investor in emerging market bonds or stocks, unless he or she is a dedicated portfolio manager with a mandate to outperform an EM index on a short term basis (1-3 years), should operate under the following assumptions.
1. “Buy-and-hold” does not work in EM.
2. Risk always trumps valuation in EM stocks and bonds.
3. EM stocks are liquidity-driven trending assets.
4. The U.S. dollar drives returns and is negatively correlated to EM stocks and bonds. READ MORE
- Why Now Might be a Good Time for Risk-Tolerant Investors to Buy Into Emerging Markets (Globe and Mail)
- What Makes Emerging Market Debt Tick? (CFA Institute)
- What’s the Right Exposure to Emerging Market Stocks? (USA Today)
- A Strategy for Emerging Market Crises (Verdad)
- In Emerging Markets, the Bulls are Back Again (Globe and Mail)
- The Emerging Asia Pacific Capital Markets: Cambodia (CFA Institute)
- What Hong Kong Dollar Bond Exposure Means to Investors (The Asset)
- South Africa Stocks “Expensive Within Emerging Markets” (Moneyweb.co.za)
- Capitalizing on Currencies to Boost Emerging Market Returns (Pictet Asset Management)
- Asia Equities: Three Trends Driving Investor Optimism (PineBridge Investments)
- Look at Stock Returns Rather Than GDP Growth Figures (II)
- Adding Emerging Markets Stocks to a Developed Markets Portfolio? A Linked Model Can Help Manage the Risk (Qontigo)
- Mastering Emerging Market Debt (Willis Towers Watson)
- PODCAST: The Question Is…Why Should Investors Bother with Emerging Markets? (Lazard AM)
- Emerging Market Debt: Hard Currency or Local Currency? (SSGA)
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