How Much Should You Invest in Emerging Markets? (The Telegraph)

With most western or developed countries still suffering from the lingering effects of the financial crisis, massive consumer and government debt levels and aging demographics, investing in emerging markets looks tempting but what is the right amount?

The Telegraph recently covered the subject and quoted adviser Jason Hollands of Tilney Bestinvest as saying that emerging market stocks only make up 3.6% of the total value of shares around the world. He recommends exposure of only 3% to 8% while risking more than 20% would be “alarming” as “Serious flaws in the economic models of some of the emerging market giants have been exposed in recent years.”

In addition, investors already get enough exposure from holding domestic stocks that have extensive interests in both frontier markets and emerging markets. For example: Unilever plc (NYSE: UL), which is widely held as individual shares or in ETFs and other funds, sells 57% of its goods in emerging markets.

To read the whole article, How much should you invest in emerging markets?, go to the website of the Telegraph. In addition, check out: Rplan Survey: Investors Have Been “Taken In” by Emerging Market Hype

Similar Posts:

• Ways to Become Over Exposed to Emerging Markets Without Knowing It (FE Trustnet)
• How MSCI’s Removal of Qatar & UAE Impacts the Frontier Markets Landscape (MM)
• Will Frontier Markets Follow the Same Emerging Market Pattern? (The Telegraph)
• China / Russia Stock Market Charts Suggest Investing Early in Frontier Markets (Like Africa) Pay Off (Telegraph)
• Better Investing Strategy: Blend Emerging & Frontier Markets (Financial Advisor)
• Frontier Markets: Small, Concentrated & Misunderstood (Financial Advisor)
• Understanding China’s Economic and Market Developments: Managing China’s Transition into Global Benchmarks (FTSE Russell)
• Investing in the Changing Shape of Emerging Markets (Amundi Research)
• How the MSCI Emerging Markets Index Changes Will Impact Investors (P&I)
• Why Emerging Markets Are Up to the Stress Test (FP)
• Deciphering the Frontier Market Opportunity (Lazard)
• J.P. Morgan: Invest in Emerging Market Exporters (Barron’s)
• Frontier Markets: Attractive Valuations with Limited Correlation (Mobius Blog)
• Investors Exit Africa for Other Frontier Markets (WSJ)
• Busting Frontier Market Investing Myths (Mobius Blog)