EEM’s China Problem Is Like EAFE’s Japan Handicap

Just as EAFE’s role in a fiduciary’s client portfolios has been led astray for years by Japan's rise in the four decades before 1988, economist Fritz Meyer says emerging markets investors are similarly misled by China’s miraculous rise. 

 

In this annotated video,  Fritz says the emerging markets investors in EEM face a China syndrome similar to the problem Japan presents to foreign investors in EAFE. It is one of several questions questions from his CE class on A4A last week.

 

 

 

For background on EAFE’s 25-year history of underperformance due to the Japanese post-War rise, see "Fritz Gets Specific."

For a year-end tax tip that is crucial to communicate to high-income pre-retirees, see this article targeting doctors, dentists and business owners. It's based on A4A CE classes from Bob Keebler.