In MoneyLetter, the advisor explains, "In a recent BusinessWeek interview, Mark Mobius, emerging markets portfolio manager at Franklin Templeton funds, noted that one reason investors have flocked to equities -- and emerging markets in particular -- is a lack of yield on dollar deposits in the US.
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"Investors always seem to be looking for the next best thing, and much attention has recently turned toward emerging markets," says fund expert Walter Frank.
Global Q&A: Battered emerging markets worth a look, consider Sohu or Gafisa
I am the Global Editor at MoneyShow.com and each week I interview an investing expert. This week, I spoke with Paul Goodwin, Emerging Markets Specialist and Analyst, Cabot Heritage Corporation. Paul thinks there may be bargains in battered emerging markets.
Q. Emerging markets have been beaten up and the Russia/Georgia conflict, unfortunately, points out one of the problems with investing internationally -- uncertainty created by government and political actions. How can investors protect their portfolios?
A. Every investor should follow the usual advice -- diversify your portfolio among different asset classes, including bonds, value stocks, income stocks, and growth stocks. Avoid overexposure to any one sector or industry, no matter how hot.
But we follow two additional important rules: 1) Use a strict loss limit of 15% (in difficult markets) or 20% (in supportive markets); and 2) always be prepared to exit the equity markets and go to cash when the general trend of the market is against you.
Q. Emerging markets have been beaten up and the Russia/Georgia conflict, unfortunately, points out one of the problems with investing internationally -- uncertainty created by government and political actions. How can investors protect their portfolios?
A. Every investor should follow the usual advice -- diversify your portfolio among different asset classes, including bonds, value stocks, income stocks, and growth stocks. Avoid overexposure to any one sector or industry, no matter how hot.
But we follow two additional important rules: 1) Use a strict loss limit of 15% (in difficult markets) or 20% (in supportive markets); and 2) always be prepared to exit the equity markets and go to cash when the general trend of the market is against you.
Continue reading Global Q&A: Battered emerging markets worth a look, consider Sohu or Gafisa
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