Emerging Markets: Reconsidering Emerging Definitions

Emerging Markets: Reconsidering Emerging Definitions by Robert Horrocks, PhD, Matthews Asia

While the term “emerging markets” first began as an optimistic label, it may be losing its value. Indeed, there are perhaps better ways to view the world of investment opportunities. Now, in the minds of most investors, the term “emerging markets” often seems to be followed by the word “crisis.” The phrase became a euphemism for “risky” or “unfamiliar.”

However, after our own developed market crisis and the troubles of the Eurozone, it seems a little arrogant to still be using “emerging market” as a backhanded compliment: “You look great, for your stage of development…” As soon as the phrase began to be used in benchmarks, it was...