Q: I hold a significant percentage of my portfolio in XEC and am happy to have the exposure to add diversification. It has been a bit of a drag on returns for a while now however, and it has me wondering — what are some plausible scenarios moving forward where emerging will outperform? Have there been significant episodes in the past 100 years or so where emerging was at the top of the index return lists?
5i Research Answer:
This question will add some colour on the international question and includes some good links. Generally, international markets do best when confidence is high and the US dollar is weak. Not exactly the conditions we are in today. But if the markets have taught us anything, it is to expect change.