Why Economic Growth Doesn't Always Mean Higher Returns

The term “Emerging Markets” was coined in 1981 by the International Finance Corporation as a marketing term to help make the case for foreign investors investing in developing economies. Today, emerging markets make up roughly 10-12% of the global market capitalization representing around 25 countries including China, Taiwan, India, South Korea, and, until recently, Russia. Characteristics like high economic growth expectations and attractive valuations compel some investors to overweight emerging markets in their portfolios, but there are some often overlooked facts, costs, and risks that should be carefully considered. Referenced in this video: Establishing ‘Emerging Markets’: https://www.ifc.org/wps/wcm/connect/c... Is Economic Growth Good for Investors? : http://csinvesting.org/wp-content/upl... Earnings Growth: The Two Percent Dilution: https://www.researchaffiliates.com/co... Foreign Speculators and Emerging Equity Markets: https://faculty.fuqua.duke.edu/~charv... Equity Market Liberalization in Emerging Markets: https://public.kenan-flagler.unc.edu/... What Segments Equity Markets?:https://www8.gsb.columbia.edu/sites/f... Drivers of Expected Returns in International Markets:https://faculty.fuqua.duke.edu/~charv... Conditional Skewness in Asset Pricing Tests: https://faculty.fuqua.duke.edu/~charv... ------------------ Follow Ben Felix on Twitter:   / benjaminwfelix   Visit Rational Reminder: www.https://rationalreminder.ca/ Follow the Rational Reminder on: Twitter:   / rationalremind   Visit PWL Capital: https://www.pwlcapital.com/teams/pass... Follow PWL Capital on: Twitter:   / pwlcapital   Facebook:   / pwlcapital   LinkedIn:   / pwl-capital   You can find the Rational Reminder podcast on Google Podcasts: https://www.google.com/podcasts?feed=... Apple Podcasts: https://itunes.apple.com/ca/podcast/t... Spotify Podcasts: https://open.spotify.com/show/6RHWTH9... ------------------