Re: Too far too fast?
Well, just from a qualitative perspective EE and the Med region is relatively new to the business world unlike China and India (everyone is well aware of both stories).* Additionally, I think China and India both have more speculative prices built into current levels.* Investment is flowing into the EE area.* Doors are still being open.* Stability is still fresh.* I think many of the EE countries will try to be like Western Europe in terms of capitalism but are not plagued by the red tape and old traditions of other countries.*
The fund I own is pretty heavy in Turkey, Egyt, Russia (the contrarian bet) and some other small EE countries.* You correctly pointed out that a huge move in returns in these particular markets wouldn't do jack to an emerging market index b/c of the light exposure.
I haven't decided on my next move.* I will probably hold b/c my position is light and I still the theme stands + my position is small. I will also agree with you that it has been up even when VEIEX is down so maybe it is a nice diversifier for time being.
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"