Emerging Markets: When Are They Worth It?

@article{Conover2002EmergingMW,
  title={Emerging Markets: When Are They Worth It?},
  author={C. Mitchell Conover and Gerald R. Jensen and Robert R. Johnson},
  journal={Financial Analysts Journal},
  year={2002},
  volume={58},
  pages={86 - 95}
}
Using 24 years of data, we show that emerging market equities are a worthy addition to a U.S. investor's portfolio of developed market equities. Specifically, portfolio returns increased by approximately 1.5 percentage points a year when emerging country equities were included in the investment set. When we considered U.S. Federal Reserve monetary policy, however, we found that the benefits of investing in emerging markets accrued almost exclusively during periods of restrictive U.S. monetary… 
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