The Real Allure of Emerging MarketsThe Real Allure of Emerging Markets
The conventional investment wisdom of going where the growth is would suggest increasing equity allocations to emerging markets. But our research shows that there's little relationship between country-level gross domestic product (GDP) growth and local stock market returns. The best way to take advantage of the developing world's growth is through bottom-up research that identifies companies that
Gregory D. Singer
The conventional investment wisdom of “going where the growth is” would suggest increasing equity allocations to emerging markets. But our research shows that there's little relationship between country-level gross domestic product (GDP) growth and local stock market returns. The best way to take advantage of the developing world's growth is through bottom-up research that identifies companies that are most likely to benefit and that are priced attractively.
The Allure
For decades, investors have been fascinated and attracted by the promise of emerging stock markets. Despite chronic volatility and, at times, breathtaking market plunges, the “rising tide” of economic growth in developing countries has been a compelling stor...
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