Emerging Market Equities are Lagging Developed Market Equities

The performance of most emerging market equities in the past few years has been average to poor. Developed markets have especially performed well in the recent past handily beating their emerging market peers. The BRICs used to the hot destination for many years. However collectively they have disappointed investors with the exception of India. Compared to …

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Three Reasons Why Investors Should Hold Emerging Market Stocks

Emerging markets have been laggards in the past few years compared to their  developed world peers. Among the developed stocks, U.S. stocks especially had a superb run last year compared to European stocks. However this year, the tables seem to have turned with European stocks outperforming American stocks so far. With the poor performance of emerging stocks …

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Family Ownership: A Compelling Reason To Invest In Emerging Market Companies?

In developed countries most publicly-listed companies are not controlled by families. In the U.S. less than one-third of the S&P 500 companies are family-owned businesses according to a study by McKinsey&Company. But in emerging markets many of the large public companies are owned by families. This is similar to the situation that existed in the U.S. in the …

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A Review of the MSCI Emerging Markets Index

The  MSCI Emerging Markets Index gives exposure to large and mid-cap companies in 21 emerging markets that include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey. At the end of 2013, the index had 824 constituents. The chart below shows the country …

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