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The current poor performance is not due to the provider of your ETF, but to the emerging markets themselves. All ETFs in this area are currently underperforming. The EM are currently not performing as well as the developed markets. Nobody knows what the future will bring, but I would definitely add them in a small weighting of 10-30% of the total portfolio and just see how it goes. Unfortunately, we don't know your entire portfolio, but as far as we can tell, your chosen ETF is quite suitable for this. ☺️
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@femkelbn Of course, no one knows what the future holds. But if it's not sooo much different than the past - and people somehow always stay the same - then EM should do much better in the next 10 years than it has in the last 10. Valuations are historically low, and so is the rate of investment in EM. Values just need to converge to long term averages and returns will be above average. 🚀
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@Epi Of course, that could be very good. Currently no one knows, I am curious how it will continue. ☺️
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@femkelbn Why do you think no one knows? It's a fact that EM is historically cheap and that a return to average alone would mean a rally. A few factors are unknown, many are known. In that respect, you can already know something, can't you?
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@Epi Wrong. You have an inkling of something that might happen. But you don't know, and that's a big difference. The stock market does what it wants, none of us has a crystal ball. We can only guess and assume that certain things could happen, but currently no one can know.
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@femkelbn Please don't feed the clown troll! This is all about exchanging views. So do I understand you correctly that you think it is impossible to know whether a market is favorably valued compared to the past?
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@Epi No, I did not say that. Of course, you know whether something is favorably valued or not. But no one knows whether it will change in the near future or whether it will remain that way for the time being because something has changed significantly. You can assume that certain scenarios could happen because it was like that in the past, but nobody can know 100% if it will be like that in the future. No matter whether one strongly suspects it or not. To assume strongly that it will happen is still not to know 100%.
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@femkelbn You didn't say it, that's true. An SOS you gave anyway, when I did not write much different than you. 🤔 If you know that something is cheap, then you eventually know that it must become more expensive, so that it is no longer cheap. Simple math, if and when it will become more expensive again, THAT of course you don't know in advance. But also in relation to the future one is not totally ignorant. Mathematical correlations and laws of nature will continue to apply in 20, 50, 100 years. With highest probability also psychological mechanisms of people and groups. I would say that I know that. From this, certain things can be deduced for the future, e.g. that there will be booms as well as crashes. So I know that, too. This list can certainly be continued, not indefinitely, but for a while. Accordingly, one can then also consider whether ideas for investments arise from it. 🤷
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@Epi Everything you have just listed, you suspect, because it was also like that in the past. That has nothing to do with exact knowledge for a long time. Maybe we define the word "knowledge" also simply differently. For me, knowing is something where you can say exactly: "On that exact day, that's exactly what happens". That is knowledge. Everything else is assuming, thinking, or guessing that something specific might happen at some point.
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@femkelbn Yes, obviously we have a different understanding of knowledge. 😅 So, for example, E=mc^2 or g=9.81m/s^2 or "The earth is 4.5 billion years old." is no knowledge? Because none of that tells you "On that exact day, that's exactly what happens".
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@Epi If you do not want to understand it, you do not understand it. 😊 Have a nice week! ☀️