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Jay-zus, I LOOOOOVE being so exceedingly, superfluously RIGHT!!!
Excerpts: an ideal globally diversified fixed-income portfolio should have 8% to 15% in securities from the developing world, considering their risk and volatility characteristics…. well, I'm crazy-off-the-scale, in comparison. Some might call me foolhardy. I'm simply reinvesting dividends with it (PREMX) at this point.
A deterioration in the expected Sharpe ratio — a technical measure of the reward for risks taken — of the DEVELOPED markets due to increased volatility calls for a greater exposure to emerging markets than in the past......
Part of the reason for the low exposure of international money managers is that many bond investors put a premium on safety over return. As a result, they have a greater bias toward debt of their home countries rather than securities issued by other countries, at least when compared with investors of other major asset classes.........Ya, the first time 'round I bought a State of Israel zero-coupon bond denominated in dollars, my family thought I was nuts. That was back in the 1990s. But available interest rates, even there, at the current time, are stingy.
“The transition of the global economy will result in [demand] being a phenomena that lasts for several decades,” Akintewe said..........So we're talking about a secular shift. Anyone NOT know this yet? Nyuk Nyuk Nyuk Nyuk Nyuk.
Reply to @MaxBialystock: Bear in mind that this asset class is not without risk - high volatility compared to domestic government bonds and higher correlation to equity. On the plus side, EM bonds provide >6% dividend and potentially high single digital total return. When invested in local currency EM bonds, one can benefit from the local currency appreciation on their improving local economies while it serves as a hedge against declining UD dollar.
Late last years several new emerging market allocation funds have been introduced that have the flexibility to invest in both EM equities and bonds. One example, Lazard Emerging Markets Multi-Strat, Instl CL, EMMIX.
Thanks for the news, Sven. Anyhow, for any of you following some of the recent conversations here which have included critique of my own asset allocation, I'm hankering to improve the look and feel of my holdings. I'm definitely lopsided at the moment. No one should pattern their own portfolio after the way mine has evolved to look right now, with 75% of my stuff stuffed (sic) into just TWO funds. OK, happy Super Bowl, all.
Comments
Excerpts:
an ideal globally diversified fixed-income portfolio should have 8% to 15% in securities from the developing world, considering their risk and volatility characteristics…. well, I'm crazy-off-the-scale, in comparison. Some might call me foolhardy. I'm simply reinvesting dividends with it (PREMX) at this point.
A deterioration in the expected Sharpe ratio — a technical measure of the reward for risks taken — of the DEVELOPED markets due to increased volatility calls for a greater exposure to emerging markets than in the past......
Part of the reason for the low exposure of international money managers is that many bond investors put a premium on safety over return. As a result, they have a greater bias toward debt of their home countries rather than securities issued by other countries, at least when compared with investors of other major asset classes.........Ya, the first time 'round I bought a State of Israel zero-coupon bond denominated in dollars, my family thought I was nuts. That was back in the 1990s. But available interest rates, even there, at the current time, are stingy.
“The transition of the global economy will result in [demand] being a phenomena that lasts for several decades,” Akintewe said..........So we're talking about a secular shift. Anyone NOT know this yet? Nyuk Nyuk Nyuk Nyuk Nyuk.
Late last years several new emerging market allocation funds have been introduced that have the flexibility to invest in both EM equities and bonds. One example, Lazard Emerging Markets Multi-Strat, Instl CL, EMMIX.
http://news.morningstar.com/articlenet/article.aspx?id=535027