Emerging markets are a powerful driver within the global economy and now contributes 38% of global GDP, nearly twice their level in 2000. As they prosper, emerging markets are undergoing rapid urbanization. Of the 524 cities in the world with populations of 1 million or more, 403 are in emerging markets.
Sources: IMF World Economic Outlook Database and Thomas Brinkhoff, Major Agglomerations of the World, http://www.citypopulation.de
Investments in emerging markets can be more volatile. As mentioned above, the normal risks of investing in foreign countries are heightened when investing in emerging markets. In addition, the small size of securities markets and the low trading volume may lead to a lack of liquidity, which leads to increased volatility. Also, emerging markets may not provide adequate legal protection for private or foreign investment or private property.
Information contained herein is for informational purposes only. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable. The views and strategies described may not be suitable for all investors. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations.