Morningstar's Guide to Emerging Market Investing

All this week we shall be identifying just what an emerging market is and which hold the potential to grow exponentially - boosting your investment portfolio

Emma Wall 10 November, 2014 | 8:19AM
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Emerging economies are the global power houses of the future. While America may still be regarded as the most influential nation in the world, its days at the top are numbered. Indeed by some calculations China has already over taken the US as the largest economy in the world.

For now however, America still holds away. In June last year when the then Federal Reserve chief Ben Bernanke announced the central bank would soon begin tapering it's quantitative easing programme it was not the domestic stock market or economy that felt the immediate repercussions. Instead it was the currencies of the Fragile Five emerging markets of Turkey, Brazil, India, Indonesia and South Africa that tanked, taking months to recover.

While emerging markets are grouped together by their potential to grow, not all emerging economies will achieve that end at the same rate. Post the global recession in 2008 emerging markets have become less correlated, more divergent - making it increasingly important for investors to make savvy choices about the international equities they choose to back.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar