How to invest in frontier markets - if you dare

If you want an investment that will buck the current trends, emerging economies could be for you. But it will be a bumpy ride, and you may just end up losing money in several languages.

When the stock market turns ugly, the quest for 'non-correlated assets' intensifies. A non-correlated asset is fancy Wall Street talk for something that doesn't move lock-step with the overall market. When the market falls, a non-correlated asset might actually rise, or at least hold its own better than the market.

Gold is a classic example. Its price tends to rise during times of stock market distress. But very few investments can rival gold's long history of non-correlation. Imposters abound. The imposters might move independently of the overall market for months or years at a time, thereby creating the impression that they are non-correlated. But when the markets really turn nasty, investors often learn that their "non-correlated" asset tumbles just as sharply as an S&P 500 Index fund.

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