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Has anyone considered investing in emerging markets overseas? The markets over there should be more akin to the "golden age" in the west. I looked a bit into it
by orange_tee 6y ago
Has anyone considered investing in emerging markets overseas?
The markets over there should be more akin to the "golden age" in the west. I looked a bit into it. In general you need higher risk tolerance and I was disappointed to find that stocks often under performed compared to US tech stocks. But maybe still a wiser investment in the long run.
- SpaceRaccoon 6y agoThe Russian stock market is considered the most undervalued in the world (CAPE ratio), but the political risk is just too high. The dividend yields alone are nuts.
- cvak 6y agoundervalued if you think Russia will not just nationalize given company. https://en.wikipedia.org/wiki/Yukos_shareholders_v._Russia https://en.wikipedia.org/wiki/Yukos_shareholders_v._Russia
- SpaceRaccoon 6y agoI've never seen that cited as a credible risk by any institutional investor. It's almost all just sanction risk.
- legulere 6y agoYou can just invest in big corporations on the stock market. In emerging countries big companies are often there just through corruption, cronyism etc. so they are not a good deal.
- imtringued 6y agoYeah, this is one of the big reasons why the stock market is stronger than the domestic economy.
- TMWNN 6y ago>Has anyone considered investing in emerging markets overseas? "Does investing in emerging markets still make sense? | Apart from China and India, there is little sign that developing economies are converging with the developed world." (https://www.ft.com/content/0bd159f2-937b-11e9-aea1-2b1d33ac3271 https://www.ft.com/content/0bd159f2-937b-11e9-aea1-2b1d33ac3...)
- chillacy 6y agoI've been diversified into EM and it's mainly been disappointing so far but we'll see. One other issue is that a lot of foreign debt is denominated in US dollars. The US can print its way out of any crisis, other countries can't.