Dian's Column
Dian's Archive


Emerging and world markets aren’t sleepy investments

By Dian Vujovich

Thanks to the high-tech computer world we all now live in, investing around the globe isn’t merely for savvy institutional investors anymore. It’s now pretty much a must for everyone.


The  original thanks for that world-wide introduction goes to Sir John Templeton, who roamed the world, made millions for many and started a trend for the masses to think outside the USA box. Now that box has no sides and opportunities come at us, or fly by us, many times quicker than it takes to type the words, “Oh my!”


Similar to our  markets, international, global and/or emerging market investing is far from risk free, albeit there are many more challenges that can muck up a market in an under developed continent, like South Africa, than those in a highly developed nation in say Europe.


A look at the historic performance of any equity market on the planet provides an honest reminder that while a market’s long-term trend may be an upward one, getting there is a jagged trip.


A recent SeekingAlpha.com article about stock market performances around the world speaks to that reality. To make that point, below is a look at how indices in some established and emerging markets have fared from January through May 31st:


-S&P 500: up 14.3%


-U.K.’s FTSE 100: up 11.6%


-France’s CAC 40: up 8.4%


-Germany’s DAX: up 9.7%


-China’s Shanghai Composite: up 1.4%


-India’s Bombay Sensex: up 1.7%


-Brazil’s Sao Paulo Bovespa: down 12.2%


-Chile’s Santiago IPSA: down 4.8%


-Mexico’s IPC All-Share: down 4.0%


Of course there are those who will argue that given the internationality of many of our large US corporations, there’s really no need to invest outside of the United States.


Then again, investment opportunity comes from many places.


And don’t forget: Once upon a time the United States was an emerging market, too.

To read more articles, please visit the column archive.

[ top ]