If one focused his/her attention solely on year-to-date performance, he/she might eschew foreign stock ETFs altogether. With the S&P 500 SPDR Trust (SPY) and the iShares S&P Mid-Cap 400 (IJH) garnering 18% and 22% respectively, who needs to dabble in emerging markets? After all, Vanguard Emerging Markets (VWO) registered a dismal 9-month showing of -8%.
Think [...] [...more]
Rob Arnott expressed an intriguing observation in an interview at IndexUniverse.com. The founder of Research Affiliates explained that the cyclically adjusted P/Es for U.S. stocks and for emerging market stocks are roughly 24 and 13 respectively. At the previous bull market height of 2007, however, U.S. stocks were much cheaper than emerging market counterparts; at [...] [...more]
Wayne Lin manages money at Baltimore-based Legg Mason Inc. In a phone interview with the folks at Bloomberg, he explained that many investors have been surprised by the significant under-performance of emerging market equities in the global “risk-on” rally.
How anemic have the upside gains for emergers been? ¬†Since the October lows of 2011, Vanguard Emerging [...] [...more]
According to EPFR Global, money poured into stock funds at a faster pace over the last week than at any time since September of 2007. For those who may not immediately recognize the date as particularly significant, October 2007 kicked off one of the most volatile and bone-jarring bear markets in U.S. history.
By no means [...] [...more]