Definition time:
An emerging market is a country that has some characteristics of a developed market, but does not satisfy standards to be termed a developed market.
This includes countries that may become developed markets in the future or were in the past.
The four largest emerging markets are Brazil, Russia, India and China.
Got the picture?
Good.
I get sick and tired of Wall Street Gurus going on about how emerging market stocks will crush U.S. stocks.
It’s just another way for them to try and convince you that our markets are overpriced.
They still don’t want you to know that we’re in The Most Hated Bull Market in History.
Maybe they just don’t get the fact that a strong US dollar chokes the life out of emerging markets (especially emerging market bonds).
Naahhhh! That’s not it.
What they fail to tell you is they’re “talking their book” in order to get you to buy into what they want to get rid of.
Don’t misunderstand me here. There are plenty of emerging stocks that will outperform the indexes.
But for the most part the strength of our dollar will prove that they’re not yet ready for prime time.
Our dollar has already wreaked havoc among the emerging market bond market to the tune of hundreds of Billions in default.
Why don’t you hear about it?
C’MON, MAN!
The boyz in the “Club” want you to think everything is fine and that you should invest in emerging markets.
Don’t take the bait.
Contrary to popular belief, our dollar will get stronger AND our market will rise with it.
And a strong dollar is devastating for emerging markets.
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