Any comments on the following emerging markets:
Giving a specific answer is tough because I do not know this person, what he owns or how much he owns.
The comment says he has an exit strategy, this is the most important thing. In a given situation a particular exit strategy may not work but the discipline to actually act on your plan is the important thing. Over time an investor can learn more about their plan's strengths and weaknesses and let it evolve over time. Where this stuff is concerned I am not really trying to be exactly right, I am trying to miss most of down a lot, should it happen.
I was public about when I reduced emerging market exposure so it is tough for me to say he should sell now if he has not sold any previously. Leaving what the market might do out of the equation, the reader now knows whether he has too much emerging market exposure (this is totally a personal decision) or not. If you can't handle the volatility you should reduce regardless of what might happen next. Sleep is more important than basis points.
One important thing is that I would never advise zero exposure to emerging markets. I believe in having at least a little in everything. Emerging markets will turn around and snap back and guessing when that will happen is probably tough to do. Having at least some EM in your portfolio means you don't have to be as correct as having zero and guessing when to add.
As for the countries he mentions in his question, they all have obvious fundamental catalysts that I believe in and they all have potential problems that are playing out now. The asset class has always been volatile and will always be volatile; there is no getting away from that.
This is similar to the reader here asking about the Russia Fund. He said he had 10% in the Third Millennium Russia Fund. First of all that is a lot, regardless of the future direction. Russia is no going out of business, the Rosneft IPO will likely create more investor excitement for Russia but that is scheduled for July and the energy theme is not over. Russia is caught up in the sell the emerging markets trade now under way. I would be guessing as to whether it is over yet (my guess is that most but not all of the selling is done, just a guess). Is the 10% before of after the decline? That would be way too much for me. George is right, the stars of the fund means nothing.
One administrative note to follow up on the business from yesterday; I have this site and write the way I do because it is fun for me. I enjoy trying to help people so whatever your expectations are, you need to get a grasp of that point. Thanks for the positive comments and yes it is water off my back.