Meanwhile, you are not accessing the majority of the international market opportunities. There are a number of industries, including telecommunications, electric utilities, retail and banking that are dominated in foreign markets by local institutions. That's why an international option makes sense right now, when markets are cheap. Some exposure to emerging markets, the data shows clearly, decreases overall risk. This has been a disappointing asset class these last five years, however, from a performance standpoint.
All asset classes go through investment cycles.
There have been major bear markets in the US and Europe in the past and the markets recovered dramatically from their lows. Emerging markets outperformed significantly from 1987 to 1993. They have underperformed ever since. We feel we are near the bottom of this current bear market and are poised over the next few years for a strong period of outperformance. In response to this crisis most countries are taking steps to strengthen their financial systems and macroeconomic policies.