- Emerging markets haven’t been the best investment in the last 10 years, but economic developments met expectations.
- Long term analysis shows that emerging markets have just started to develop and the fundamentals are extremely cheap for the expected growth.
- Each emerging market is different and one has to individually analyze political, currency, demographic, natural, and other risks in order to make proper investment decisions.
There is a huge difference between short-term and long-term effects on financial markets.
In the short term, anything can happen and sentiment is what mostly drives short term trends. If we take a look at the long-term chart for the iShares MSCI Emerging Markets ETF (NYSEARCA: EEM), we can see how it’s still 24% below its 2007 peak. More →