Investors Should Stick With Emerging Markets

These are strange times in the investment world and indeed the whole global economy, when many of the certainties that have driven stock and bond prices over the past decade and more appear to have been thrown out of the window.  On this side of the world, we are seeing vast sums flowing into European markets, particularly fixed income. As I write, the five-year German bund is yielding a whole 0.07pc, hardly the type of return that you could build a pension pot on. 

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For Emerging Markets, 2013 Couldn’t End Soon Enough

Most emerging-market investors likely want to forget 2013, a year when assets from a broad swath of the developing world were plagued by losses. But some investors are sticking around, hopeful of a modest rebound in 2014.  The year was a bust thanks largely to a massive summer sell-off in emerging market stocks, bonds and currencies, sparked by speculation that the Federal Reserve was looking to reduce the stimulus efforts that had been goosing the global economy for years. While many of those assets managed to recover some losses later in the year, few managed to return to positive territory by the time the calendar turned to 2014.

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