Don't Fear Emerging Markets

Despite the beating they've taken, developing countries still hold promise.

Think your investments have taken a beating this year?

Take a look at T. Rowe Price Emerging Markets Stock (symbol PRMSX). Year-to-date through November 7, the fund plunged 58%. What's worse is the damage that the sharp selloff (including a 46% loss in the past three months) has done to the numbers for its long-term performance. Through the end of 2007, the fund had returned an annualized 41% over the previous five years. Now, the five-year annualized return is a mere 8%. Ouch.

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Steven Goldberg
Contributing Columnist,
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or