Head Global Market Strategist Paul Christopher, CFA® offers insights for investors who want to know why emerging markets have underperformed and what the future may hold.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. These risks are heightened in emerging markets.
Investing in fixed income securities is subject to interest rate, issuer, credit, inflation and liquidity risks. Bond prices fluctuate inversely to changes
in interest rates. Therefore, a general rise in interest rates can result in the decline in the bond's price. In addition to the risks associated with investing in international and emerging markets, sovereign debt involves the risk that the issuing entity may not be able or willing to repay principal and/or interest when due in accordance with the terms of the debt agreement.
An index is unmanaged and not available for direct investment.
MSCI India Index is designed to measure the performance of the large and mid-cap segments of the Indian market. With 64 constituents, the index covers approximately 85% of the Indian equity universe.
MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging market country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates.
A.G. Edwards was a predecessor company of Wells Fargo Advisors.
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The information in this report was prepared by the Global Investment Strategy (GIS) division of WFII. Opinions represent GIS’ opinion as of the date of this report and are for general informational purposes only and are not intended to predict or guarantee the future performance of any individual security, market sector, or the markets generally. GIS does not undertake to advise you of any change in its opinions or the information contained in this report. Wells Fargo & Company affiliates may issue reports or have opinions that are inconsistent with, and reach different conclusions from, this report.
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