mallarde

Global Stock Markets: Index Movements

I put a large proportion of my wealth (which is sadly not much) in a number of overseas index ETFs (GML, EZA, EEM and DEM) right at the peak in around Nov. 2007.

Ouch. I really thought that the South African market would move independently of the U.S. market. When I charted my ETFs against the Dow last week, they were in lock step the whole way. What is up with that???

Only DEM, which focuses on income-producing stocks, has held its value.

I have no plans to get out of the ETFs at this point, but I really have no sense of where these indeces are heading, in particular EEM. I think emerging markets have the most downside potential. Any thoughts?