VWO is a screaming buy - historical PEs well below 10 year averages, vs DOW and S&P at much higher than historical average now. All this because of illogical reasoning: (1) Its the safe haven for all things money (wasay illogical, esp if Barry S gets back in office and one of the worst debtor nations in the world, rivaling the worst of Europe) and (2) the Fed forcing you INTO the market, just because.
I prefer to invest in areas where there is a future, the developed world has no future, it's changing hands now and you better be on board.
All this, not to mention what happened with EMs last year. They lost big last year vs US markets. The EMs are due to take off like a rocket, its going to happen. Don't let the Central Banks and Big Investment Banks (The Generals) force you into something that only makes them look good. And, when they bail, US investors will be out of luck and fast, just like 2007.
I agree with most of what you said. I am tied with all the cliff talk and the American markets. I bought a bunch of dogs like AMD NOK HPQ GLW and DELL. I have alot of money in beat down China Micro caps . They have been on a roll since august. The chart CHARTRTO (reverse take over) has been going up. I could see many of the stocks down 80% turning around.
Wall Street and big mutual funds together sell Emerging Markets when the only thing they SHOULD be selling (that is if they actually want a growing economy) is the Developed World. No comparison on growth, check for yourself - US/Europe is treading water and near drowning in debt. We have just gone over 100% of debt/GDP for the first time ever in history (except WW2 where we had a reason to go into hock).
Screaming Buy! They can't hold EMs down. I have a call option on VWO and will do nicely.