Emerging Markets Tipped by Experts

by Peter Wakeford
Posted by Hannah on 21 January 2009
Emerging Markets Tipped by Experts

Investing in Asian or Latin American stocks could pay off for some savvy shareholders, it has been claimed.

Emerging markets could offer investors good returns over the months to come, experts have suggested.

New analysis from Aberdeen Asset Management comes despite turmoil having afflicted stock markets in developing economies around the world over recent months.

Globally, shares have lost around 50 percent of their value since the onset of the credit crunch in the summer of 2007. However, Aberdeen argues that developed economies, such as the UK and the US face big "structural imbalances" which have caused the downturn and stock market turmoil in these countries.

By contrast, the note added, emerging markets in developing economies have suffered a "cyclical slowdown" due to the developed nations' problems. Therefore, they could be said to be better-positioned to recover strongly from the global economic downturn.

Joanne Irvine, head of emerging markets for Asia at Aberdeen, commented: "We remain relatively sanguine about the outlook for emerging economies, given that they are in relatively good shape compared with their highly leveraged mature market counterparts.

"Conditions in all markets will continue to be challenging, but disciplined stock pickers who invest in good value quality companies should do well over the long term."

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