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Foreign Markets

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Reputable Member Customer
Joined: 3 years ago
Posts: 357
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Since there is no section in the forum specifically for arguing the merits, accuracy or validity, or stating ones opinions, I am continuing the discussion of the Wall St. Journal On Next 10 Years Rates of Return tread under the Sharing of Inflation Rates, Rates of Return to this section of the form.

@hines202 Huh? Are they talking about emerging markets or something? The US is a baby compared to many developed countries.

When it comes to a mature and fairly stable economy/stock market of a democratic country, the US is the old man on the economic scene. The DOW Jones Industrial Average was created in 1896, S&P 500 in 1923. The next 3 largest present day economies (China, Japan, Germany) were decimated by WWII and basically had to start over 😲 . The same is true of Great Britain, France, Russian, etc. That is why there is limited usable historical data on most foreign developed “stock markets”. Good data only starts generally around the late 1960’s-early 1970’s 🧐 . Emerging markets have even less history.

Reputable Member Customer
Joined: 3 years ago
Posts: 304

I stay away from emerging markets, too volatile/speculative at least for the important money (retirement accounts, etc). Maybe for the fun money account.

We've talked about international funds a lot lately, and I want to remind folks to be careful about currency risk there. It's the reason I only use a hedged ETF for that category.