After a rather turbulent six months, some of us will be looking at rebalancing our portfolios and so I thought that I would start a thread where questions could be posted concerning asset allocations and rebalancing.
I will begin by asking about my emerging markets allocation which currently targets for 10 per cent of my overall portfolio. The sole investment is the Vanguard Emerging Market ETF (VWO):
One year return -20.76%, five year return -0.29%.
Do you consider this to be a reasonable target allocation in a reasonable investment taking the different factors, including past performance into consideration? What do you feel are the prospects for emerging market equities going forward given today's economic climate?
Thanks for any thoughts and assistance and feel free to post your own asset allocation and rebalancing questions on this thread.