Reuters
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Retirees tempted to invest in emerging market equities should know that the sector is lower today than at its fall 2007 pre-financial crisis top.
That’s crucial information because it illustrates how long emerging market stocks can take to recover from a major decline. Since retirees need to withdraw money from their retirement portfolios every year, they can ill afford an investment that stays underwater for long periods.
This is especially important to keep in mind now, since some financial advisers believe that emerging markets are the only category of global equities that will produce a significant return above inflation over the coming decade. GMO, for example, the well-known Boston-based money management firm, projects that the S&P 500