The Wall Street Journal reported on the bounce back of emerging markets over the third quarter. After the sell off in May the markets came back, as did the exchange traded funds. The Journal article looked at mutual funds, but the same can be said for ETFs. Due to the hold on U.S. interest rate increases, strong company earnings and high commodity prices the average return on diversified emerging market funds was 4.4%.
Investors need to watch for volatile commodity prices; a sharper slowdown in the U.S. and political risk in some of the emerging countries, such as Hungary, Poland and Thailand.
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