Click for video
Video
Source: Yahoo Finance

 

 

One caveat: That’s their headline — I note we are now equal weight US stocks and underweight US bonds.

via Morgan Korn, Yahoo Finance

 

Category: Media, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

15 Responses to “Forget U.S. Stocks: Consider Markets That Got “Shellacked””

  1. BenE says:

    That is good advice. Also, consider that if the world gets out of its unemployment crisis and taking into account the fact that Asia and South America are moving towards more mature economies, the last place with very cheap labor, favorable demographics (young workforce), vast natural resources and a completely underexploited economy is Africa.

    Africa just needs to get corruption under control to unlock huge economic potential.

    Although I am convinced Africa is headed for huge growth, I don’t know if this will translate into good investment opportunities for foreigners. Stock markets don’t always capture growth in emerging economies. Especially if the companies listed are extractive and depended on corruption to unfairly exploit resources.

    I wish there was a way to invest in an African index that is based on companies inclusive of locals and in regions with aggressive anti-corruption efforts. Although individual companies may suffer from not being able to exploit corruption, taken as a group I believe they would be lifted. African businesses forced to abandon unfair advantages from corruption benefit when their many competitors are also prevented from using corruption.

  2. RW says:

    Adding to BenE’s point, the only folks I knew who made significant money in the first decade of post-Soviet East Europe were the folks who worked with someone local, often someone they knew personally, WRT investing, business ventures, etc; folks who invested indirectly/passively via secondary markets or distant agents or what have you didn’t do nearly as well.

    The terrain in an emerging market can be very treacherous; it’s not just corruption, it’s that the rules of the game are unsettled.

  3. Bryan says:

    I am a bit confused about some of the stats mentioned in this. EEM has over 800 holdings, VGK has about half that. What am I missing here?

  4. GoodFriedman says:

    Did you consider EEMV instead of DVYE? Yield is only 1.8%, but it has higher volume, more holdings, and better performance.

    • I am not a fan of the “Minimum Volatility” style of funds. It has become a gimmick, and a crowd0ed one at that.

      0.69% fee was a on starter (They waive a chunk now, but you know thats temporary)

  5. carchamp1 says:

    So when you’re not hanging out with the ladies at Bloomberg, you’re chatting it up with Lauren Lyster, eh? Life is good Ritholtz!

  6. odnalro zeraus says:

    Barry.
    Am i suffering from a semantics problem?
    VGK shows a 1-year total return of 18.78% and an 11.55% for 3 years, and since the low of about $29 in Qi 2009 it is up to $52 today. Should that be called a shellacking?
    Can Its top holdings be defined as “European”, as they are worldwide global multinationals per excellence – “Nestle, Novartis, BP, Shell BAT; etc.”
    What am I missing?
    Love you!

  7. Willy2 says:

    Investing in Europe & Emerging markets ? What is one Mr. Ritholtz smoking ? His own “narrative” ? I hope it isn’t lethal or illegal.

    • Let me remind the exact same attItude accompanied the BUY US STOCKS call in March 2009

      • Willy2 says:

        Ah, but this is NOT 2009 anymore. My favourite indicator is still drifting lower. But that indicator bottomed in february 2009 and then started to move higher during 2009, 2010 & 2011. The same indicator that predicted the deflation of 1920, 1921, the stockmarket crash of 1929, the crash of 2008. And the economic recovery of 1930 & 1932.
        It’s a matter of having the right model, the 1926 – 1933 model.

        The news from Europe is NOT good. And I know it because I am from Europe !!!!

      • Willy2 says:

        Yes, but the pundits could/can point to two things; A rising US stockmarket & a USD/EUR driftng higher since mid 2011. “Money is moving from Europe to the US”. And that’s not entirely untrue.

        However, for me, a rising USD (sharply) against the EUR, BRL, CAD, AUD, NZD is the ultimate bearish and the most deflationary “indicator”.

  8. Moss says:

    European multii-nationals make sense, looks like EM are still not dry from the shellacking. I would wait for EM. I also think that active funds will do better than passive.