NSRGY - Building A Portfolio From Scratch: Are Emerging Markets Mainstream Enough To Be Your Core Holding?
- This article derives from a close friend's request to put together a portfolio from scratch; it forced me to consider just how strongly I feel about my current views.
- Most of us have portfolios constructed over time; starting from zero generates questions about allocation, diversification, time, and timing.
- The vanishing point for which we have a reasonably coherent view of the future is ten years; lack of visibility beyond that period makes "permanent" allocation an illusion.
- Diversification is important, but unhelpful when it makes you own things you don't believe in; China is the elephant in the room, a nice and friendly one, we hope.
- Emerging markets have 40-59% of global GDP, 13% of market cap, and 3-7% of US portfolios: which of these numbers is right for a newly constructed portfolio?
For further details see:
Building A Portfolio From Scratch: Are Emerging Markets Mainstream Enough To Be Your Core Holding?