Originally Posted by RioIndy
Should I sell it and cash that in? Any other thoughts on this?
I'm in the same position with regards to the Euro. It's not so much the CAD that went down, the USD went up
I did not cash in on that, and will not cash in. Simply put because I am investing, not timing the currency markets.
In addition, yakkers seems to be confusing VWO with a dollar investment? It's not!
You are invested in companies in emerging markets, whether or not you buy them in USD is irrelevant for the performance. Since it is denoted in USD however you do get the illusion that it does. Buying or selling VWO because of a USD / CAD movement is plain silly (sorry for the bluntness).
So if emerging markets is part of your asset allocation, stick with it. Merely dropping it because it hasn't performed for several years (vs. decades) is not a sound rationale to me.
Every asset class will underperform and outperform at some point - right now US stocks have been on a rampage, but that may change to Europe or even Emerging. Unless you know more than most of us, there is not an easy way to tell.
Long story short: decide on an asset allocation long term and stick with it, don't chase (past) returns or feelings. You'll get burnt.