(August 2020)

Investors in emerging markets are getting more and more excited about the prospects for the asset class. The big reason why has to do with the US Dollar. Emerging markets are highly sensitive to changes in the strength of the Dollar and tend to perform well when the Dollar is weak. According to Ritholz Wealth Management, between 1974 and 2019, in years when the Dollar rose, foreign stocks on average returned 2%, while emerging markets gained 2.7% versus a 10.8% return for the S&P 500. However, in years where the Dollar fell, foreign stocks rose 18.6% and emerging market stocks returned 22.5% versus a 12.8% rise for the S&P 500.

(Rio de Janeiro)

FINSUM + Magnifi: Emerging markets have a stellar track record in years where the Dollar weakens, so they are one of the best ways to play a falling greenback.

 

Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. As of August 2020, 75,000 users with $210 Billion in Assets Under Influence, has used Magnifi over 225,000 times. Try it for yourself today.

 

This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]