A Fundamental Case for Emerging Market Currencies
Shishir Nigam submits:
When it comes to strategic asset allocation, most investors typically move their investments between equities, bonds and cash, and are often satisfied with the returns and diversification they achieve just through investments in international securities within those asset classes.
However, the diversification promised by international investments, when sticking to bonds and equities can be quite deceptive. The basic premise behind the belief of diversification benefits achievable from international investing stems from the common view that correlations between international markets are low. That claim may not necessarily hold true in today’s markets. (Click to enlarge)
