Monday 24 June 2013

Guest post: investors test the new emerging markets world order | beyondbrics

"It is no secret that emerging economies have evolved enormously over the last decade: stronger institutions, sounder macroeconomic policies and resilient banking sectors have enabled local financial systems to develop in an unprecedented manner. This has helped a majority of these countries to turn the page on past crises and become much more attractive places to invest.

But the picture is now changing. As monetary policy in the US approaches an inflection point and the dollar strengthens, this new world order is being put to the test. Indeed, the market correction that began this spring is a good reminder of the complexity and variety of these many markets.

The case for making investments in the developing world a more strategic component of institutional portfolios rests on a simple and powerful premise: the ongoing rebalancing of global economic power. Yet one can’t make the portfolio case for emerging markets without also acknowledging that this is a transition of historic dimensions, marked by advances and setbacks."

'via Blog this'

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