$ 7.6 billion
worth of emerging market stocks and bonds were purchased by foreign investors in March — an «impressive» investment value according to the Institute of International Finance, considering what a volatile month it proved to be.
Investor sentiment in emerging markets was at a 20 - year low at year - end, and an
index of emerging market stocks was the cheapest ever on trend - earnings multiples, suggesting that, in at least some instances, concerns may be adequately discounted.
A: The Cabot Emerging Markets Timer is a trailing market indicator that uses the performance of the MSCI Emerging Markets Index to gauge the
trend of emerging market stocks.
$ 7.6 billion
worth of emerging market stocks and bonds were purchased by foreign investors in March, according to data from the Institute of International Finance (IIF).
This performance history indicates that the compound
return of emerging markets stocks was 11.3 %, versus 10.4 % for the Standard & Poor's 500 Index SPX, -0.02 % Data sourced for this report comes from Dimensional Fund Advisors.
But now, as the Federal Reserve (Fed) is poised to raise rates for the first time in nine years, many investors fear that higher interest rates could hurt the performance
of emerging market stocks.
A great example of the recency problem involves the performance of value stocks (another good example would be the performance
of emerging market stocks).