There is No Such Thing as a Typical Emerging Market (The Telegraph)
Tom Stevenson, an investment director at Fidelity Worldwide Investment, has written a piece for the Telegraph to explain why there is no such thing as a typical emerging market as countries classified as such have all performed very differently since Ben Bernanke dropped his taper bombshell.
Stevenson wrote that the countries most vulnerable to a change in sentiment were those that had allowed themselves to become dependent on inward investment with India, Indonesia, Turkey, Brazil and South Africa finding themselves grouped together as the “fragile five.” Moreover, many emerging markets had failed to “fix the roof while the low-interest-rate sun was shining” as their current accounts were in disarray and their export-led model was in need of a rethink.
He also added:
“But look a little more closely and it is clear that the very concept of emerging markets is unhelpful as an investment catch-all. There is no such thing as a typical emerging market and the countries captured under this heading have performed very differently over the last year.”
To illustrate the above point, to included the following chart showing the performance of Dubai, India, Thailand and the S&P 500:
To read the whole article, There is no such thing as a typical emerging market, go to the website of the Telegraph.
- Election Results in Some Fragile Five Emerging Markets Calm Investors (Reuters)
- 2017 Global Retail Development Index (ATKearney)
- Which Emerging Markets Have the Most Leveraged Stocks? (Bloomberg)
- Frontier Market ETFs Have 72% Exposure to Oil-Dependent Countries (FT Adviser)
- Asia at a Crossroads: Demographics, Economics & Investment (State Street)
- Emerging Market Acronyms Like “Fragile Five” are Misleading and Unhelpful (SCMP)
- Economic Prospects in Several Emerging Asia Countries (Wells Fargo Securities)
- “Fragile Five” Emerging Markets No Longer That “Fragile” (AP)
- Emerging Market Companies & Governments Binge on US Dollar Debt (WSJ)
- The Emerging Market Sand Trap: Financial Reports, Currency & Other Risks (Epoch Times)