Thoughts on Emerging Markets?

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pugchief
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Re: Thoughts on Emerging Markets?

Post by pugchief » Sat Nov 09, 2019 7:40 am

ochotona wrote:
Fri Nov 08, 2019 6:59 pm
A new, tiny ETF, offered by AlphaArchitect.com. I spoke to Jack Vogel over there today.

https://freedometfs.com/

It only invests in Emerging Markets with a high quotient for human liberty and economic freedom. A capital idea!
While I am 100% in favor of human liberty and economic freedom, mixing politics and investing* is not the way to maximize profits. As long as you realize this going in, have at it.

I will also, again, recommend staying away from ETFs that trade on low volume.

*mixing politics and sports is also not the way to maximize profits. (see ESPN, NFL, NBA)
*mixing politics and Thanksgiving, however, is a way to save on Christmas gifts. O0
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ochotona
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Re: Thoughts on Emerging Markets?

Post by ochotona » Sat Nov 09, 2019 8:06 am

pugchief wrote:
Sat Nov 09, 2019 7:40 am
ochotona wrote:
Fri Nov 08, 2019 6:59 pm
A new, tiny ETF, offered by AlphaArchitect.com. I spoke to Jack Vogel over there today.

https://freedometfs.com/

It only invests in Emerging Markets with a high quotient for human liberty and economic freedom. A capital idea!
While I am 100% in favor of human liberty and economic freedom, mixing politics and investing* is not the way to maximize profits. As long as you realize this going in, have at it.

I will also, again, recommend staying away from ETFs that trade on low volume.

*mixing politics and sports is also not the way to maximize profits. (see ESPN, NFL, NBA)
*mixing politics and Thanksgiving, however, is a way to save on Christmas gifts. O0

Challenging to trade low volume ETFs. You have to use limit orders, take a look at the charts, trade small blocks. But at some level you have to mix politics and investing. I just don't think you could invest in the late 1930s and into the early 1940s and be OK with holding German war stocks.
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pugchief
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Re: Thoughts on Emerging Markets?

Post by pugchief » Sat Nov 09, 2019 8:29 am

That's a pretty extreme example, but point taken.
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Smith1776
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Re: Thoughts on Emerging Markets?

Post by Smith1776 » Sun Nov 10, 2019 12:24 am

Fully one fifth of the equity portfolio of my portfolio is invested in emerging markets. Emerging markets SCV to be exact.

Emerging markets are riskier than developed markets. And markets are very efficient. It stands to reason that the market will then price emerging market stocks to have higher expected returns. This is doubly true for the SCV regime.

The PP has a limited amount of equity exposure. Tilting the stock portion of the portfolio towards the riskiest parts of the market makes eminent sense IMO.
Early to bed and early to rise makes a man healthy, wealthy, and wise.
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ochotona
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Re: Thoughts on Emerging Markets?

Post by ochotona » Sun Nov 10, 2019 6:06 pm

Smith1776 wrote:
Sun Nov 10, 2019 12:24 am
Fully one fifth of the equity portfolio of my portfolio is invested in emerging markets. Emerging markets SCV to be exact.

Emerging markets are riskier than developed markets. And markets are very efficient. It stands to reason that the market will then price emerging market stocks to have higher expected returns. This is doubly true for the SCV regime.

The PP has a limited amount of equity exposure. Tilting the stock portion of the portfolio towards the riskiest parts of the market makes eminent sense IMO.
That sounds familiar... https://portfoliocharts.com/portfolio/s ... fat-tails/

Yeah, I'm torn about this tiny fund. FRDM. It is so friggin' small. I think it would be a nightmare to momentum trade it. I think the only way to own it is to really buy it and hold it, have a small strategic allocation to it, and kind of forget about it. Then maybe you wake up to a pile of cash in your account and an email from your brokerage saying, "Oh, by the way, your ETF holding FRDM got delisted and liquidated last week"
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