Emerging Markets Not Done Yet

This year, the European markets have done just as badly as the U.S. markets. Many have done a lot worse.

Many of these countries have economies that are still expected to grow two or three times faster (or more) than that of the U.S. or Europe. And companies in these countries are also expected to grow earnings much faster than American or European companies. At the same time, their economic and banking systems are becoming more open and transparent and increasingly subject to the rule of law.

Market growth is never smooth. There are bound to be breaks in the climb. We're in one of those breaks now. It shouldn't last. The emerging markets still have a greater upside than those in developed countries. And the iShares MSCI Emerging Markets (EEM) ETF is probably the best way to invest in them.