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Align the Whole Investment Stack
- Successful emerging markets investing requires scrutiny at three levels: country, industry, and bottom-up stock analysis.
- Misalignment at any level can lead to poor outcomes despite strong fundamentals elsewhere.
Diversify Beyond US Tech Giants
- Diversifying into emerging markets reduces concentration risk inherent in US equities dominated by a few tech giants.
- Emerging markets often show low or inverse correlation to US assets, enhancing overall portfolio stability.
Manage Currency Risk Strategically
- Build a portfolio with a balanced mix of exporters and importers to hedge against currency fluctuations.
- Include companies from countries with managed currencies to reduce exposure to dollar strength.