advertisement
Apr 1, 2010 12:00 PM
The Real Allure of Emerging Markets
There's little relationship between country-level gross domestic product growth and local stock market returns. A better approach: identify companies that will benefit most and will pass on those benefits to investors
The conventional investment wisdom of “going where the growth is” would suggest increasing equity allocations to emerging markets. But our research shows that there's little relationship between country-level gross domestic product (GDP) growth and local stock market returns. The best way to take advantage of the developing world's growth is through bottom-up research that identifies companies that are most likely to benefit and that are priced attractively.
For decades, investors have been fascinated and attracted by the promise of emerging stock markets. Despite chronic volatility and, at times, breathtaking market plunges, the “rising tide” of economic growth in developing countries has been a compelling story. With economists predicting that growth in developing countries could outpace that of developed economies by as much as 200 percent to 300 percent over the next several decades, that story is more compelling than ever. (See “Future Emerging Markets,” p. 37.)
Sign in to
view the full article
Not a subscriber?
Subscribe & Save
Get immediate access to Trust & Estates onlineSubscriber Benefits
Learn more about Trust & Estates magazine, online article access and our free enewsletters.
Topics of Interest
| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
| Private Foundations | Life Insurance |
| 2010 Tax Act News | Industry Trends Surveys |
E-Newsletter Signup
Poll
Topics of Interest
| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
| Private Foundations | Life Insurance |
| 2010 Tax Act News | Industry Trends Surveys |
E-Newsletter Signup
advertisement
T&E eNewsletters
Wealth Watch 
Wealth Watch is a free e-newsletter delivered twice a month with expert advice on wealth management from Trusts & Estates.
Latest from Wealth Watch
Tech. Review
Technology Review is a free monthly e-newsletter from Trusts & Estates and nationally renowned expert Donald H. Kelley. It is geared to keeping estate planning lawyers current on the latest tech news they can use.
Latest from Tech. Review
Philanthropy Tax Guide
Each month, Conrad Teitell reports on and analyzes as important tax development governing charitable contributions, including how to maximize the benefits and avoid the pitfalls.
Latest from Conrad Teitell
2011 Trust Glossary
Click here to download the 2011 Trust Glossary
50 Years Ago This Month
| 50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb. |
Conrad Teitell's Guide to Tax Benefits For Charitable Gifts
Click here to view the most up to date guide (September 2011)
Press Releases
advertisement
advertisement
