Craving Performance? Look at What's Emerging

Chart of the Week | December 31, 2012 | Topics: Alternatives,  Equities,  Investing for Income 

EM's Have Outperformed, But With More Risk - This chart shows 10-year return and risk stats (December 31, 2001-December 31, 2011)

With investors starved for returns, emerging markets offer tremendous opportunities. Emerging markets' GDP and wealth accumulation have great long term growth potential based on growing exports and commodity production. Given that the average US investor, with only a 5% allocation, is considerably underweight the sector, demand for emerging markets assets should remain strong for some time. However, how to manage the volatility and risk?

Investing involves risk including loss of principal. Investments in emerging markets may be considered speculative and are more likely to experience hyperinflation and currency devaluations, which adversely affect returns. In addition, many emerging securities markets have lower trading volumes and less liquidity.

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December 24, 2012

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The Proof is in the Performance

January 07, 2013

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