It is easy to be convinced that the world’s future lies in the East and other emerging economies and that investing in fast growing emerging economies is where future strong returns will come from. It is easy to forget that real risks exist, such as asset expropriation, capital controls and the lack of a developed rule of law, among many others. Reality may surprise some. This note takes a balanced view of the returns and associated risks of investing in emerging market equities.
This article does not constitute financial advice. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult your financial planner to take into account your particular investment objectives, financial situation and individual needs. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections.