Recent trends are changing portfolio asset allocations of developed markets and emerging markets investments. While many developed markets, particularly the United States, embrace big government and socialistic policies that result in slow growth and high unemployment, many of the emerging markets are moving in the opposite direction.
Countries such as Brazil and India have moved in the direction of free market economics and have rebounded quickly after the recent global crises. As a group, emerging markets provided investors with an annual rate of return of 10% for the past decade; while the S&P500 returned nothing.
When investing in emerging markets, closed-end mutual funds and exchange traded funds (ETFs) offer instant diversification and low costs. One of my favorites is the Templeton Emerging Markets Fund (EMF). It has been a long term holding of the Arbor Asset Allocation Model Portfolio (AAAMP) because it provides excellent management, a sound investment record, and diversification among many growing economies.
Proper diversification among investment asset classes and categories is crucial to successful investing in today’s challenging environment. The Arbor Investment Planner provides investors everything needed for self directed investing.
| AAAMP Blog by Ken Faulkenberry | |
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Ken Faulkenberry earned an MBA from the University of Southern California (USC) Marshall School of Business with an emphasis in investments. Ken has 25 years of investment experience and is dedicated to helping people with self-directed investment management through the Arbor Investment Planner. His asset allocation strategies have an outstanding performance record. |
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Nice perspective highlighting solid opportunities individual investors tend to overlook just because we are infatuated with Silicon Valley and mesmerized by Wall Street. Thanks for the reality check!