In Hungary, it turns out that Prime Minister Gyurscany lied about the health of the economy in trying to get reelected. This has resulted in demonstrations in the streets including, according to one story I read, a takeover of state-run television!
Thailand is currently enduring a coup. A coup?!
Prime Minister Thaksin has been controversial for a several years, and it looks like it has reached a boiling point.
I write a lot about investing in emerging markets, and I have unyielding faith that the asset class belongs in a diversified portfolio, but moderation is very important and something I have tried to convey here.
I had countless comments and emails from readers with 20%-30% in emerging markets last winter before the spring correction. I urged those people to cut back, but who knows if they did.
IMO, equal weight is about 7%, and for some folks, that is too much, which is OK. The current events of this week will not be the last disruptions in your lifetime for these markets.
Be exposed, yes, but also be prudent.