Five questions about: Emerging markets


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The Independent Online

Emerging markets? Where are they?

These are the geographical investment areas of places such as China and India, which have long been tipped to emerge as economic powerhouse.

Have they emerged?

China certainly has, claiming the title of the world's second-largest economy last year. But all is not so rosy elsewhere in the Asian region. This week has seen India, Thailand and Indonesia attract a lot of negative comments as their stock markets have struggled.

What's going on?

"These markets have seen big outflows recently, driven by ongoing discussions about QE unwinding and deteriorating macro data in both Thailand and Indonesia," says Teera Chanpongsang of the Fidelity Emerging Asia Fund.

Sounds scary. Should I take my money and run?

You shouldn't react to investment news by panicking. In fact, consider the opposite – that the Asian sell-offs could offer an opportunity.


Possibly. But you need to take a long-term view, says Brian Dennehy of "India and Indonesia are precisely the geographical areas on which long-term growth investors should be focused, due to attractive demographics and low GDP per head," he says.

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