Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.arkets, like many other phenomena driven by human behavior, tend to move in cycles. Humans, on the other hand, have a tendency to extrapolate recent history into the future and as investors this kind of thinking can get you into trouble.
An important variable to consider when talking about Emerging Markets is the US Dollar. The Dollar has a long-established inverse correlation with the performance of Emerging Markets, which is another way of saying that a strong Dollar has historically been a headwind for Emerging Market equity returns.
Emerging Markets already comprise over 40% of Global GDP, yet, despite their significance and outlook, Emerging Market stocks make up a mere 30% of the worlds listed stock market value. Global Index representation is even lower at around 10% and most global investors have even less exposure at around 6% – a clear under-allocation even relative to Emerging Markets’ current significance.