Please ensure Javascript is enabled for purposes of website accessibility

How an Emerging-Market Crisis Could Affect You

By Dan Caplinger – Feb 2, 2014 at 8:11AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Do Turkey and Argentina really matter to you? Here's why you should care.

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 (VWO 1.96%), iShares MSCI Emerging Markets (EEM 2.15%), 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 (PG -0.76%) and Coca-Cola (KO -0.35%) 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.

Dan Caplinger owns shares of Vanguard FTSE Emerging Markets ETF. The Motley Fool recommends Coca-Cola and Procter & Gamble and owns shares of Coca-Cola. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Coca-Cola Stock Quote
Coca-Cola
KO
$62.04 (-0.35%) $0.22
Procter & Gamble Stock Quote
Procter & Gamble
PG
$145.48 (-0.76%) $-1.12
Vanguard International Equity Index Funds Stock Quote
Vanguard International Equity Index Funds
VWO
$39.45 (1.96%) $0.76
iShares MSCI Emerging Markets Indx Stock Quote
iShares MSCI Emerging Markets Indx
EEM
$38.41 (2.15%) $0.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
351%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.