Why Looking at Emerging Markets is a Smart Move

by Minority Fortune

Developed markets have been experiencing a beatdown for some time now. As a result, it has investors looking for greener pastures elsewhere. Emerging markets have remained in better standing and offer nice returns on investments.

For those who made educated investments, the move is paying off. The Wall Street Journal reports that several banks in emerging markets are experiencing great returns. China and India aren’t the only market movers either. Banks operating in Brazil and South American countries are doing well also.

How well are they doing? Well, here’s a snapshot courtesy of the WSJ:

India’s Sensex index is up 77% so far this year, while Buenos Aires’ Merval index has doubled in value.
Santander’s share price has risen 79% this year, handily besting the pan-European Stoxx 600 index, up 26%.

The returns stomp the pavement in comparison to the paltry returns on developed countries’ indices. However, the downside is that no can predict whether the returns can sustain long-term returns. There’s also volatility to battle. Yet, many investors think the risks are worth it. After all, these markets are just beginning to develop and haven’t even begun to realize their full potential.

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