Contrary Indicators

[corey_m]

I saw a Toyota commercial last night where a kid suggested putting money saved on the car into Emerging Markets

Comments

[prock]

Would you like to make a capital investment in a shoeshine operation?

[corey_m]

Probably not...

[spidurman]

My misread was actually a better bubble stereotype -
Use the credit card to buy emerging markets

[gunga_galunga]

Should I dump my FXI and ILF? FXI in particular has kicked ass.

[corey_m]

I would probably sell them pretty soon, like after the next Fed rate cut and market pop, especially if they are held in a tax-deferred account and you don't have to pay cap gains.

[gunga_galunga]

ILF is, FXI is not. It's more than doubled since I bought it last November. I'll probably hold on until next month when I'll have had it at least a year, although I may put a stop loss in place.

[sabyl]

I bought EEM a little over a year ago as part of my IRA. Didn't realize it was trendy, just seemed logical to me and a way to diversify away from SPY and QQQQ. I tend to be big on the indexes since I don't have time to do too much research in individual companies. So for someone looking for retirement income - are you still concerned about emerging markets or just for those hoping to make short term profit?

[corey_m]

I like EEM a lot as a long-term, low cost international growth investment. I just think that the emerging markets are over-hyped at this point and will have a cooling period soon, perhaps a significant one.