Managing Currency Risk Is Crucial for Emerging-Market Investments, Too

Mexican equities have far outperformed Chinese equities over the past 20 years, although China’s economy has left Mexico’s in the dust. Why? China managed its currency tightly, Mexico did not. For more on the relationship between GDP growth and equities—and the investment implications—see my colleague Morgan Harting’s guest post on

This post contains links to third-party websites. AllianceBernstein is not responsible for nor does it endorse the content on these sites.


Sharon Fay

Sharon E. Fay was named Head of AB Equities in July 2010. She is responsible for overseeing the portfolio management and research activities relating to all growth and value investment portfolios. In addition, Fay serves as CIO of Global Value Equities, overseeing the portfolio management and research activities related to cross-border and non-US value investment portfolios. From 1999 to 2006, she was CIO of European and UK Value Equities, serving as co-CIO from 2003 to 2006 after being named CIO of Global Value Equities in 2003. From 1997 to 1999, Fay was CIO of Canadian Value Equities. Prior to that, she had been a senior portfolio manager of International Value Equities since 1995. Fay joined the firm in 1990 as a research analyst, subsequently launching Canadian Value, the firm’s first single-market service focused outside the US. She then went on to launch the company’s UK and European Equity services and build Bernstein’s London office, home of its first portfolio management and research team based outside the US. Fay holds a BA from Brown University and an MBA from Harvard Business School. She is a CFA charterholder. Location: New York

Related Posts

2 thoughts on “Are Bonds Really Less Risky than Equities?

  1. Hi Patrick,

    Fascinating study. Thank you for sharing it. I was wondering, when you show real returns of stocks broken down by capital gain and dividend yield, are you subtracting the rate of inflation from the capital gain or from the dividend yield or both? In other words, are you showing nominal yield and real capital gain? Or real yield and nominal capital gain? Or some type of adjustment in between. Thanks again for sharing.

    • The methodology applied by the authors of Triumph of the Optimists: 101 Years of Global Investment Returns is to measure real equity total returns and real equity capital gains. I show the dividend yield as the difference between the two. For example, the real equity total return from 1900 to 1910 was 6.8% annualised; the real equity capital gain was 2.0% and we show the difference between the two of 4.8% as the real yield. Incidentally, the returns to the world equity series comprises a seventeen-country, common-currency (US dollar) index and hence real returns are after US inflation.

Comments are closed.