Emerging Markets: The ‘Next 11’ and ‘Fragile 5’

Emerging Markets: The ‘Next 11’ and ‘Fragile 5’

“Regardless of the way an investor gains access to the emerging markets, it is important to recognize that different factors such as commodity prices, economic development, and political instability can affect each emerging economy differently …Rather than simply weighting securities based on market value, fundamental strategies weight securities based on economic factors such as sales, cash flows, and dividends plus buybacks. With this thoughtful approach, fundamental strategies have historically delivered distinctive and compelling returns over time.”

Consider the economic growth underlying the “Next 11,” a term coined by Goldman Sachs. The group is South Korea, Mexico, Indonesia, Turkey, Nigeria, Vietnam, the Philippines, Iran, Egypt, Pakistan, and Bangladesh. And don’t forget the fiscal deficits and current account vulnerabilities of the “Fragile Five;” of Brazil, India, Indonesia, Turkey, and South Africa.



One Comment Add yours

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s