Archive for the ‘emerging_markets’ tag
Top Emerging Markets Funds
Bear market vs long term strategy?
I am holding around 15 funds which are considerably the top of their classes (resource, emerging market, europe, china, – not much US). Overall the entire portfolio performance has been following the market in the last 2 yrs.
I am debating whether to hold on or sell some of them and switch to more conservative funds.
I am looking into long term investment so here is the 5 yr scenario:
Say my portfolio stands at 15K now. If a short recession hits and it drops to 10K this year. Then the bear market returns the following 4 yrs (ROR=10%). My portfolio will worth 15K after 5 yrs
If I switch to safer funds (ROR=2%) then buy back these funds next yr. Regardless of what their prices will be by then, if they grow 10% per yr, my portfiolio will become 22K.
This article says don’t sell if you aim for long term:
http://globefund.ca/servlet/story/GFGAM….
But based on my simple calculation, it doesn’t make sense.
Can any one shed me some light?
If you have a diversified portfolio, you will be better in the long run. You should have some stable Investments to keep the volatility of your portfolio down.
Emerging markets