It’s a generalization, but I’ve noted that the more experienced and sophisticated investors are, the more likely they are to have an allocation to emerging markets(1) and the more likely they are to be overweight in EM. I know otherwise sane and intelligent people who have extreme over-allocations to EM  (double the cap-weighted exposure, for example). read more »

During the first half of the 20^th Century (and for roughly 400 years before that) we had hot wars. Millions died, and sometimes, as with World War II, something useful was accomplished, though we’ll have to leave it to God to decide whether the accomplishments were worth the sacrifices. read more »