Ask people in the street what they know about investing in emerging markets, and they’ll probably say something like this…
Emerging markets are volatile. They tend to be crisis-prone. And when crisis strikes, it usually spreads.
But having some exposure to emerging markets is important because, over the long term, emerging market shares outperform shares in developed markets.
GrizzlyRock Value Partners was up 16.6% for the first quarter, compared to the S&P 500's 5.77% gain and the Russell 2000's 12.44% return. GrizzlyRock's long return was 22.3% gross, while its short return was -2.9% gross. Compared to the Russell 2000, the fund's long portfolio delivered alpha of 10.8%, while its short portfolio delivered alpha Read More
All those statements sound about right.
But that’s because investors have very short memories.
When you actually study the data from 1900 onwards in detail, as Professor Paul Marsh has done, you’ll know the truth is rather more complex.