So , to understand we need to understand whether stocks or bonds are positively or negatively correlated. A research conducted by Todd Moss and Ross Thuotte of the Center for Global Development indicates that:
The monthly correlation between S&P 500 and Europe was 0.817 from 2009 to 2011
The monthly correlation between S&P 500 and Latin America was 0.823 from 2009 to 2011
The monthly correlation between S&P 500 and Asia was 0.71 from 2009 to 2011
The monthly correlation between S&P 500 and South Africa was 0.36 from 2009 to 2011
The monthly correlation between S&P 500 and North Africa And Middle East was 0.41 from 2009 to 2011
To see full article: http://www.businessweek.com/articles/2013-10-21/how-to-save-your-401-k-invest-in-africa#r=nav-r-story
Will you invest in Africa?