Kiplinger

How to Navigate Investing in Emerging Markets

If you've been investing in emerging-markets stocks, you probably have a bad case of whiplash. After a rip-roaring run in 2017, the MSCI Emerging Markets index fell 17.7% from its peak in late January 2018 through mid September. "There's certainly a lot of volatility out there," says Arjun Jayaraman, a manager of Causeway Emerging Markets fund. "And yes, there will be more."

That's no reason to run from emerging-markets stocks, though. In fact, it may be a good time to dip in, especially if your portfolio is out of line with your long-term investment plan. Even a moderately risk-tolerant U.S. investor with a 10-year time horizon should have 30% of his or her stock portfolio in foreign shares, and of that, 6% should be devoted to emerging-markets stocks, says

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