Although an opportunity may exist in these markets, it is equally important to consider risks such as political instability and weak infrastructure that could hinder economic output and performance. In general, frontier markets are much more volatile and less liquid than markets of the developed or emerging world.
A good way to help protect against these risk is the implementation of an exit strategy that identifies when downward price pressure is likely to be seen in these ETFs. Such a strategy can be found at www.SmartStops.net.
Written by Kevin Grewal in Houston, Tx
At the time of publication, Grewal was long FRN.