Although it’s been a long time coming and an even longer time expected, the Fed decided not to raise rates at the most recent FOMC meeting. This news comes as a bit of a disappointment to investors and economists, especially after the past week of downturn in American stock markets. However, it is the emerging markets that have experienced notable distress. Although some of the issues many of these nations face are chronic or fundamental inadequacies, the currencies have taken the hardest hit.
globalEDGE Blog - By Tag: emerging-markets-in-focus-series
South Korea is in uncharted waters. Amid recent economic turmoil in Asia, South Korea has become a safe haven for foreign assets. Some have speculated that emerging market investors have gotten smarter, and therefore can identify countries within the space that are better long term investments. Another school of thought, however, is that South Korea has transcended from an emerging market to a fully developed nation, and therefore presents more security in the face of economic trouble.
As of late, most news related to emerging markets has been overwhelmingly negative. China’s economic growth rate is dropping, and Brazil and Russia are mired in economic recession. To make matters worse, the 19 largest emerging economies have seen an outflow of more than $900 billion in investor capital over a thirteen-month period ending in July. Despite all of the negativity surrounding emerging markets, there are indicators that suggest emerging economies will be just fine.