Looking at International equity markets
Printing money like the USA is doing makes me nervous and I am looking for places to "currency proof" my clients portfolios. Take a look at these one and three year charts.
The first thing that strikes me is the high correlation between these ETFs. One would expect that VWO and EEM would have a really high correlation since they represent the same index.
Second is FXI is performing more like EFA and VGK or the developed markets and less like emerging markets. What is up with that?
Lastly, go Latin America! Only place in the past three years that you would actually have made money.
Diversity in all of your asset classes is good, but with these high correlations are we getting paid for the risk?
The first thing that strikes me is the high correlation between these ETFs. One would expect that VWO and EEM would have a really high correlation since they represent the same index.
Second is FXI is performing more like EFA and VGK or the developed markets and less like emerging markets. What is up with that?
Lastly, go Latin America! Only place in the past three years that you would actually have made money.
Diversity in all of your asset classes is good, but with these high correlations are we getting paid for the risk?
Posted by Bradley Fluetsch at 11/30/2010 7:55 AM 
Categories: Asset Allocation
Tags: International equity stock market emerging China Latin currency
Categories: Asset Allocation
Tags: International equity stock market emerging China Latin currency
Comments