Emerging market stocks had a difficult year in 2013. They’re having a rougher year in 2014. The usual suspects are being blamed: rising interest rates, fears of a global economic slowdown, bubbling real estate prices in parts of the world coupled with a looming bank crisis, political turmoil in some countries, and the list goes on. In the words of the late Yogi Berra, “It’s déjà vu all over again.”
Markets are not exchanges, exchanges are not indexes, and indexes are not investments. Yet, these words are often interchanged in discussions about index investing. I hope this will add some clarity to the discussion.
Every quarter since 2008, my company has recorded a quarterly conference call for clients and anyone else who wishes to listen. The call covers economic conditions, market trends, investment strategies, and current topics that are important at the time.
Mutual fund performance is predictable. Like a broken record, mutual fund managers who attempt to outperform the markets have once again failed to deliver on their promise in most categories. That’s the bottom line of a new report released by S&P Dow Jones.
It was a madhouse. Traders said they’ve never seen anything like it. Regulators snapped into action. President Obama was immediately briefed. Long-term index fund investors yawned.