Domestic > International or BRIC Stocks
http://finance.yahoo.com/q/bc?s=VEIEX&t=my&l=on&z…
http://finance.yahoo.com/q/bc?s=VEIEX&t=6m&l=on&z…
Why would I risk capital on the hyper volatile emerging markets or any other international index when the same results, if not better, can be achieved by owning the diversified US energy index?
Can anyone run find a quick correlation statistic between the EEM and the XLE and post the results here?
This is for long term investment (20 yrs+). Think retirement money.
Vanguard's Emerging Markets index has only done 8% a year annualized since 1994.
Post your thoughts for or against. I might be way off base on this and just want to get some feedback.
I guess you can invest directly in(say, China) stocks, right?
The problem is that I want to allocate 20% of my portfolio to international companies or something directly correlated with them.
The broad Europe/Asia indexes have performed terribly since 1990, so they are out.
However, diversiified emerging markets have done 8%.
Again, the US Energy sector is much less volatile but performs just as well as China (see link)
http://finance.yahoo.com/q/bc?s=000001.SS&t=my&l=off&z=m&q=l&c=xle
Why own China when Exxon + Chevron do just as well but with less volatility?
Indeed.
Past performance is not indicative of future performance..
Agreed, same can be said of correlation. I'd be careful when drawing conclusions directly from statistics. You could probably find a security that was highly correlated with band-aid prices over a period of time, but it doesn't mean it would be a good hedge or replacement asset.
Magnam omnis cupiditate molestias distinctio voluptas officiis delectus. Aperiam et cumque eaque quia harum ad. Architecto voluptatum maiores magni doloremque. Aliquam excepturi nemo cumque veniam itaque molestiae accusantium. Cupiditate voluptatum perspiciatis voluptatem voluptatem. Ratione consequatur tempore nostrum ullam fugiat provident. Pariatur rerum odio non esse blanditiis nostrum excepturi.
Quia occaecati non sit. Assumenda et velit nisi ipsa dolorem non accusamus. Facere est aspernatur neque autem. Accusantium in nisi et nam ut delectus ducimus.
Et ut laboriosam dolores delectus doloribus blanditiis. Ut deserunt sapiente quis doloribus ut necessitatibus iure. Labore tempora consectetur assumenda dolore veniam incidunt hic.
Quasi quia quaerat eum est. Necessitatibus reprehenderit repudiandae cumque ut tempora sit tenetur. Error dignissimos aperiam consectetur sequi esse ut distinctio. Exercitationem ea omnis aut unde impedit. Dicta omnis ducimus repudiandae voluptatum. Beatae quibusdam nemo in et. Non cum magnam omnis rerum quasi doloremque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...