In an insightful article published on December 5th in The Wall Street Journal, financial analyst Michael A. Pollock presents and explains five myths about investing in emerging markets: 1. High stock valuations aren’t a big deal in fast-growing economies. 2. Emerging-markets stocks are well-insulated from financial upheavals elsewhere in the world. 3. Emerging markets are a growth play. 4. Emerging-markets currencies will appreciate as the dollar continues its long-term decline. 5. You can do even better by concentrating on just a few of the strongest emerging nations. Pollock acknowledges that this year the returns offered by some emerging markets (that, by the way, registered continued capital inflows) were higher than the returns of the U. S. stock funds, nevertheless investors should be cautious and don’t overestimate their merits.

Read article