The MSCI Asia ex-Japan Index surged 47% in 2017 compared to 20% for S&P 500 in the United States. Significant more opportunities are ahead in emerging markets. All long-term investors should have a decent exposure to emerging markets. Further, emerging markets often provide excellent short-term trading opportunities.
Here are the four key points to consider.
- The U. S. market is very expensive. Emerging markets, for the most part, are relatively inexpensive.
- Emerging economies are growing at a much faster rate than the United States. In the long-term this should lead to significantly higher returns in emerging markets.