It would have to be Lead's Total World Stock Index ETF (VT)if I might own just one stock or ETF. Perhaps I'm taking the concern a little too actually or maybe I just do not have the needed convictions in my (or anybody's) market forecasts to choose anything more focused. VT is the most varied ETF catching the largest portion of the world stock exchange capitalization.
So if the market returns are appropriate, then why not just accept them? You here actually are increasing your risk and reducing your expected return by not simply accepting market returns. In some cases it does not pay to get made complex and "attempt." Let's use the example of driving in rush hour on the interstate.
The iron ore debacle, for example, was almost certainly a result of speculative excess at the local level. Many traders scratched their heads on hearing the news of 90 large iron ore freighters idling in the water for 2 weeks or more, waiting to discharge at overflowing Chinese ports.
Masses of new apartment were being constructed. The rates of these condo/apartments continue to increase. Those that were $40,000 when building and construction began are now $100,000. Land worths continue to soar exponentially. More people can pay for vehicles. Everybody has a cell phone. Schools and universities teaching everything from nursing to English classes to management and computer skills are turning up on every corner. And the schools are loaded.
Sell Real Estate Investments. He prompts real-estate financiers (Steve: such as a few of my listeners that have 2nd houses and financial investment homes) to get out now prior to rates drop even more and you're stuck in a market without any liquidity.
The truth probably lies in the middle of these extremes. The world is filling out and Emerging Markets will extremely likely exceed more mature markets but do not anticipate a straight line up. Near term there will be some pullbacks in particular nations depending upon circumstances.
If you study the relative movement of these 2 items in the chart, you will see that EEM [ green], moves in the exact same direction as the SPX [black], but the motion is significantly exaggerated. Nevertheless, their peaks and valleys line up fairly well. It is challenging to forecast the degree or amplitude of the relative movement, but the forecast of the instructions is solid.
But a one day dive in an emerging market of a nation whose economy is one-fifth the size of the U.S.should not make any cent stock investor lose sleep.