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Bogle: Emerging Markets Cheap for a Reason

Given the risks, there is little reason to devote more than 10% of a portfolio to emerging markets, says the Vanguard founder.

Benz: Jack, I'd like to get your take on whether investors who are venturing overseas, perhaps into emerging markets, might expect a slightly higher return on their money. It seems that we're hearing some very smart people say that if there is one pocket of attractive valuation in the market today, it might be emerging markets.

Bogle: I think there is a lot of risk, capital risk, sovereign risk, economy risk, most of them are very export-dependent, and so I think they are cheap for a reason. There is no such thing, as one might say, as a free lunch, and I just don't think you need to do it.