Image Credit: Alex Nabaum
Emerging markets have finally emerged — by one measure, anyway.
It’s not that companies whose shares trade on the stock markets of developing nations have been generating great returns lately. Instead, they’ve adopted at least one major characteristic of the world’s most-advanced economies: artificially smoothing their earnings to pander to analysts and investors.
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This article was originally published on The Wall Street Journal.
Further reading
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
“Earnings Management: Developed vs. Emerging Markets” (Rayliant Global Advisors)
“Pundits Predicting Panic in Emerging Markets” (Research Affiliates)
Compendium of posts on investing in emerging markets (Lawrence Hamtil)