On the other hand, this is also true: emerging markets give investors the benefit of the world's fastest economic growth.
Investors would be wise then to combine these two strategies by buying emerging markets stocks that pay steady dividends.
In practice, this is more difficult than it ought to be - but it's not impossible.
In fact, as you'll learn later I have found numerous ways to profit from this best of both worlds strategy.
What You Need to Know About Emerging Market Dividend StocksDividend-paying stocks in emerging markets have the same advantages as they do in the U.S. market.
Just like here in The States, a sizeable dividend from overseas is not only money in your pocket, it's also evidence that the management is working in your interests as a shareholder.
And by paying dividends investors can be sure that at least some of the earnings the company is generating are real and not the result of an accounting flim-flam.
If a company in a fast-growing emerging market is able to pay a decent dividend and participate in local growth, then you can anticipate very good returns indeed, since the dividend itself is likely to grow on the back of the company's rapidly increasing profits.
Of course, there are always risks in emerging market investing, but a good yield gives your holding a solidity that isn't present in companies with mere paper earnings.
But here's what you need to know...