Risks and Rewards in Emerging Market Investments
In light of the recent currency crises in East Asia, this article questions the accepted wisdom that emerging market securities deserve to be included in global portfolios primarily because of their low correlations with more conventional asset classes. The authors suggest that the basic cycle of emerging market loans and securities appears to have been compressed, and its swings accentuated, by the herd-like behavior of global institutional investors. This is not the irrational behavior of crowds infected by investment euphoria, but the rational behavior (however volatile) of a large number of institutional investors with huge stakes in the market, each trying to outperform or at least keep up with the others. 1997 Morgan Stanley.
Year of publication: |
1997
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Authors: | Smith, Roy C. ; Walter, Ingo |
Published in: |
Journal of Applied Corporate Finance. - Morgan Stanley, ISSN 1078-1196. - Vol. 10.1997, 3, p. 8-17
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Publisher: |
Morgan Stanley |
Saved in:
freely available
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