ETFs Make Case for Emerging Market Stocks over Emerging Market Bonds
Lawrence Weinman submits:
The recent new stories about Dubai’s debt (as well as that of Greece and a list of others) got me to revisit my thoughts on emerging markets bonds. I haven’t changed my mind…they don’t make sense to me as part of a portfolio.
The rationales for holding emerging market bonds are that it is a diversifier for portfolios, that it offers a way to participate in the growth of emerging markets and that it offers a yield pickup compared to U.S. treasuries. I’m not convinced.
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