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How an Emerging-Market Crisis Could Affect You

U.S. markets have lost ground lately, with emerging markets getting a lot of blame for the drop. Yet should U.S. investors really worry about emerging markets, and if so, why?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, goes through the basics of why emerging markets affect investors in the U.S. and around the world. Dan notes that millions of investors invest directly in emerging markets through Vanguard FTSE Emerging Markets (NYSEMKT: VWO  ) , iShares MSCI Emerging Markets (NYSEMKT: EEM  ) , and other similar funds. Moreover, Dan points out that even if you don't own emerging-market stocks, most U.S. multinational corporations have emerging-market exposure. Dan specficially looks at Procter & Gamble (NYSE: PG  ) and Coca-Cola (NYSE: KO  ) as among the companies most affected by a major emerging-market disruption. Dan concludes that even if emerging markets seem to have no impact on your daily life, they could affect your portfolio.

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Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

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Related Tickers

8/28/2015 10:34 AM
EEM $33.95 Down -0.28 -0.80%
iShares MSCI Emerg… CAPS Rating: ***
KO $39.27 Down +0.00 +0.00%
Coca-Cola CAPS Rating: ****
PG $70.98 Down -0.50 -0.70%
Procter & Gamble CAPS Rating: ****
VWO $34.83 Down -0.29 -0.83%
Vanguard Emerging… CAPS Rating: *****