Neptune: Emerging Markets Will Never Repeat 2000's Returns

Neptune's chief economist James Dowey says the BRIC concept helped burst the emerging markets bubble - but the next decade could be one of positive returns

Emma Wall 8 June, 2016 | 8:15AM
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Is the tide turning for emerging markets? Slowly, according to Neptune’s chief investment officer and chief economist James Dowey. But even when fortunes change for the emerging economies, investors should be wary of expecting too much.

For history will not be repeating itself, according to Dowey. The 370% return of the BRIC nations in the Noughties – the decade from 2000 to 2010 – was a one-off phenomenon.

“In the decade from 2000, emerging markets blew the lights out, while developed markets recovered from the tech bubble bursting and slid towards the sub-prime disaster” explained Dowey. “That was one of only four decades in stock market history when the US failed to make a positive return – alongside the First World War, the Great Depression and the period of high inflation in the Seventies.”

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Emma Wall  is former Senior International Editor for Morningstar