"Save" money in emerging markets

As the US stocks goes up non-stop for 5 years, it is rather difficult to find good valuation stocks nowadays. But you cannot simply save your money in cash in the bank as it pays you near nothing. So where you need to put money then?  Emerging market (EM)! The emerging market is poised for substantial growth in the next few years as I’m expecting. In addition to put some money in the EM stock market, which I think will be performing much better than in the US, you may also “save” your money in the EM bond market, enjoying a high yield. I find one bond fund, Templeton Global Income (GIM), with a current yield of 5.2%. This fund holds bonds from the Emerging Market Countries with the asset allocation of 31% in Asia, 40% in Europe and 17% in Latin America. I expect GIM will be also doing great along with booming EM in years ahead. Two things I’m particularly interested in:

·         It pays a monthly dividend, which is more efficient in terms of compounding with dividend reinvestment

·         Its price action presents a bullish technical setup: a reverse head and shoulders, which often leads to an upward price movement.

I think it is a good buy at this price.