October 2010. Emerging markets offer compelling long-term return potential, but continue to present risks that every investor should understand. In this paper, Richard Titherington, CIO of the Emerging Markets Equity Team at J.P. Morgan Asset Management, discusses the risks inherent to emerging markets and looks at the effect they have had on economic and investment performance. He also explains why globalisation and urbanisation mean that, for long-term investors who are aware of the risks, there is considerable reason for optimism about emerging markets.
Emerging markets: understanding the risks
