NEW YORK ( TheStreet) -- Investors with long-term time horizons tend to look at stock exposure in emerging markets as a guaranteed win. But when we look at this year's conspicuous underperformance in the BRICs benchmarks (in Brazil, Russia, India, and China), it starts to become clear that those investing in these regions need to exercise conservative caution.When we look at most financial headlines, optimism continues to be the central theme. Stock benchmarks in many developed nations have shown double-digit growth on the year, with the S&P 500 and Dow Jones Industrials gaining more than 20%. Even in Spain (a nation with unemployment rates above 26%), the Ibex has moved higher by nearly 4%.
Emerging Markets Not Part of Stocks' Rally
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.