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| Rose Peel • Messages: 4 • Years on forum: 11.3 |
08:03 PM 01/31/2015 |
With US equities being so expensive and EM not having good returns for the last couple of years - does it make sense to reallocate to EM equities?
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| Anne Prine • Messages: 5 • Years on forum: 11.2 |
12:14 AM 02/01/2015 |
EMs are very different nowadays! Think about particular countries. Also, there is Europe and Japan to put into consideration if you want to go out of US
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| Mary Rine • Messages: 1 • Years on forum: 11.2 |
06:27 PM 02/02/2015 |
India had a fantastic return in 2014: SENSEX went from 21000 to 29000.
Shanghai Composite had an even better rally from 2050 in mid 2014 to 4440 April 30, 2015.
So all EMs are very different.
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| Lisa Helene • Messages: 1 • Years on forum: 11.2 |
12:14 AM 02/03/2015 |
That makes sense if you want to go to niche EMs like Vietnam or Russia
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| Kimberly 85 • Messages: 1 • Years on forum: 11.2 |
11:27 AM 02/04/2015 |
Adding to the previous advice: growth driver that drove EMs in 2000s to their highs (commodity cycle driven by China growth) are no longer there.
US market is expensive and there are EMs which have good prospects, so if you want to diversify allocating part of your portfolio to EMs is a good idea, but you need to manually select them.
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| May Leng • Messages: 8 • Years on forum: 11.2 |
10:09 AM 10/07/2015 |
Speaking about technicals: since the end of last year and the drop in commodity prices EMs are not in favour, investors are pulling money away. So even if you see some value don't go against the tide now...
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Outflows from U.S. exchange-traded funds that invest in emerging markets more than doubled last week, with redemptions exceeding $12 billion in the third quarter.
The losses marked the 13th time in 14 weeks that investors withdrew money from emerging market ETFs and left the funds down $12.4 billion for the quarter, the most since the first quarter of 2014, when outflows reached $12.7 billion. For September, emerging market ETFs suffered $1.9 billion of withdrawals.
http://www.bloomberg.com/news/articles/2015-10-05/emerging-market-etf-outflows-double-as-losses-hit-12-4-billion
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