Stock markets of emerging countries outperformed those of first-world nations from 2004 through mid-2008. They crashed hardest of all later that year. Intrepid investors who loaded up after the decline saw huge gains over the next two years.
The relative valuation of the emerging markets is now as low as it has been since the latter part of 2005. Significant rallies followed each sojourn back to about the 0.22 level. Market Shadows has been a buyer of both the Templeton Emerging Markets Fund (EMF, Financial) and the Vanguard FTSE Emerging Markets ETF (VWO, Financial) in recent days.
This group has been dominating the most oversold ETF list. They are very cheap and, history tells us, likely to bounce back before long. The figures below do not include Monday’s negative price action.
Note: The Templeton Emerging Market Fund (EMF) is a closed-end fund, not an ETF. It was not eligible to be included in the ETF comparison chart.
See the full Market Shadows newsletter here http://marketshadows.com/newsletter/
The relative valuation of the emerging markets is now as low as it has been since the latter part of 2005. Significant rallies followed each sojourn back to about the 0.22 level. Market Shadows has been a buyer of both the Templeton Emerging Markets Fund (EMF, Financial) and the Vanguard FTSE Emerging Markets ETF (VWO, Financial) in recent days.
This group has been dominating the most oversold ETF list. They are very cheap and, history tells us, likely to bounce back before long. The figures below do not include Monday’s negative price action.
Note: The Templeton Emerging Market Fund (EMF) is a closed-end fund, not an ETF. It was not eligible to be included in the ETF comparison chart.
See the full Market Shadows newsletter here http://marketshadows.com/newsletter/
