asset managers, BRICS, closed-end funds, developed markets, dollar-cost averaging, emerging markets, frontier markets, Hong Kong, Howard Marks, NAV discount, NAV premium, portfolio allocation, reductio ad absurdum, Trading Economics
Continued from here. [And most definitely, this is the last post in the series!]
This might actually be the perfect time to write about emerging markets – the developed market douche-bags (DMDs) are out in force again, warning us emerging markets are tanking… It’s a common refrain: a) developed markets are in recession, emerging markets must tank, b) developed markets are showing zero growth, emerging markets must tank, c) developed market growth’s bouncing back & rates are rising, emerging markets must tank, and d) well…emerging markets simply must tank!
2013 may turn out to be even sillier. So far, most of the year’s been spent denigrating – nay, reviling – emerging markets, simply because developed stock markets have done so well. Of course, the sub-text here is ‘why don’t you just forget/sell emerging markets (forever) & just stick to developed markets?!‘ Christ on a rope, that’s like handing out bloody gold medals to whoever took the most steroids… And now developed markets have caught a dose of the colly-wobbles in the past week or two – again, DMDs would have you believe it’s another good reason to sell emerging markets. Yes folks, we’ve finally reached the point of reductio ad absurdum:
i) Developed markets go up – sell emerging markets,
ii) Developed markets go down – sell emerging markets, and
iii) Don’t forget i) & ii).