3 main risks of investing in foreign equities of emerging markets

Synopsis
After crisis situations, poorer countries may possibly default on debt, see political upheaval, etc. At such times, the question is not when, but whether the economy will truly recover. Philippines MSCI index has never recovered from the 1997 financial crisis.

Foreign equities offer a way to diversify out of domestic market bias. However, developed markets (DM) and emerging markets (EM) offer different risk-rewards. ET Wealth sheds light on what investors can expect.

3 main risks of investing in foreign equities of emerging markets

SynopsisAfter crisis situations, poorer countries may possibly default on debt, see political upheaval, etc. At such times, the question is not when, but whether the economy will truly recover. Philippines MSCI index has never recovered from the 1997 financial crisis.

Synopsis
After crisis situations, poorer countries may possibly default on debt, see political upheaval, etc. At such times, the question is not when, but whether the economy will truly recover. Philippines MSCI index has never recovered from the 1997 financial crisis.