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Down 20% over the past quarter, emerging markets (ETF: EEM) - including China (FXI), India...

Down 20% over the past quarter, emerging markets (ETF: EEM) - including China (FXI), India (EPI), Brazil (EWZ), Taiwan (EWT), and South Korea (EWY) - are a bargain, Barron's says.
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Comments (3)
  • Tack
    , contributor
    Comments (14561) | Send Message
     
    Wait a minute!

     

    Aren't we repeatedly told that "it's different this time" and that it's really just America coming to its end and that all those other budding economies aren't really dependent on America anymore and are just going to blossom, while we irreversibly decline? Apparently, somebody didn't get the message.

     

    And, as if to punctuate the nonsense behind such claims, where does all the money flee at the slightest signs of trouble? That's right, U.S. dollars and Treasuries.
    20 Aug 2011, 07:07 PM Reply Like
  • Jake Huneycutt
    , contributor
    Comments (1402) | Send Message
     
    FXI is only a "bargain" if you assume that the Chinese banking system is solvent. Unfortunately, many of the others (EWT, EWY, EWZ, EEM) are heavily dependent on China, as well, and would probably get beaten down hard if Chinese growth were to slow significantly.

     

    India (EPI) might be the exception.
    20 Aug 2011, 07:26 PM Reply Like
  • kmi
    , contributor
    Comments (4404) | Send Message
     
    EWT is heavily tech oriented (52%) not sure I'd view it as heavily China oriented. (finance.yahoo.com/q/hl...)

     

    I'm also unsure how S Korea qualifies as 'emerging market'.

     

    But I'll say if anyone has lost money by still being in a BRIC they haven't been paying attention.

     

    If a global slowdown occurs - which appears to be impending - and folks are still sitting in the commodity based countries (Australia, Canada, Peru etc) I'll also be surprised if folks actually lose money on them.

     

    Personally I like places that export agricultural products right now.
    21 Aug 2011, 07:36 AM Reply Like
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