A survival guide for managing investments

With the new year under way, pundits are issuing their forecasts of market returns for 2013 and beyond, while a number of big uncertainties loom on the horizon. More

To continue reading this article, please do one of the following.



A survival guide for managing investments

Posted 2/18/13

With the new year under way, pundits are issuing their forecasts of market returns for 2013 and beyond, while a number of big uncertainties loom on the horizon.

Will economic growth rise to its historical average? Will unemployment drop? Will the Eurozone get back on track? Will emerging economies decouple from the over-leveraged developed economies?

Meeting your goals requires adapting your asset-allocation strategy to counteract the changes in the financial and economic landscape.

Worldwide strategies better reflect today’s economic reality than the traditional division of assets into U.S. and non-U.S. categories.

A worldwide strategy will allow you to invest in the best companies regardless of where they are domiciled.

Many investors shy away from the international markets, particularly the emerging markets, out of fear or a lack of understanding the important role they can play in a portfolio. During the 1980s equity markets in developing countries were extremely small and illiquid and received relatively little interest from investors. However, over the next few decades, emerging equity markets experienced enormous growth and development.

The dramatic growth of emerging economies over the last decade has drawn the attention of investors worldwide. The International Monetary Fund recently projected a robust 6 percent growth rate of real GDP in emerging economies for 2013 compared with a modest projection of 2 percent for developed economies.

In parallel with the growth of emerging economies has been an exponential rise in the market value of emerging-markets equity offerings, resulting in a steady increase in emerging markets as a share of global equities.

Although emerging-market equities are commonly (and accurately) viewed as a source of high long-term growth, they also generate high income. The number of dividend-paying companies located outside the U.S. is even larger than the number in the U.S. In fact, emerging-market equities typically have higher dividend yields than U.S. equities.

Next Page
Calendar
PBN Hosted
Events

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot early!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement