The Evolution of Emerging Markets

Almost 80% of the emerging market index is made up of countries that were not investible in 1988

Dan Kemp 5 May, 2017 | 11:30AM
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The late Sir John Templeton was well-known for saying “the four most dangerous words in finance are ‘this time it’s different’”. This wisdom has provided a lot of value over the years, and his preference for historical analysis has been particularly useful in understanding market cycles in a long-term setting.

However, the other side is that one must also be mindful of the ways markets evolve. This can be demonstrated in a variety of ways, but we have selected emerging markets below as a means of illustrating the dangers of expecting history to exactly repeat itself.

The evolution of the MSCI emerging market index from its inception in 1988 to today by country

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About Author

Dan Kemp

Dan Kemp  is Chief Investment Officer, Morningstar Investment Management EMEA