Put your money in emerging markets now

It is a contrarian call and right now people are running away from other countries’ stocks but only interested in the US stocks. There is a good reason of course that in the current global landscape, it seems only the US is expanding economically and all the others are contracting. But that’s really where the value comes in. You won’t find good values when there is euphoria and everything looks rosy. You will only find good values when there is depression and blood in the streets. Think about early 2009 when it seems the world was falling apart and the end of world was coming. I can bet 99% of people would not even want to talk about stocks at that time, not to mention putting money into it. But that was exactly the best time to buy stocks! We are now approaching this moment for the emerging markets. When you look all the metrics of valuation for stocks, it is simply much cheaper all around in the emerging markets: PE, price-to-book-values, and dividend yields. Of course I cannot tell you now we are seeing the absolute bottom but there no such thing that you can be absolute sure to pick up the real bottom in advance. It will only become clear after it has happened. My gut feeling is that we are very close to the bottom of the abysm if not yet there. If you are taking a long-term approach, I think now is the time to start to pick up shares of the emerging markets with the understanding that it will be volatile. It is always more risky to try to only focus on one or a few specific countries. It would be much easier and safer to invest in the overall emerging market ETF. Just simply one click via EEM can do it!