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From Precy Dumlao, Opalesque Asia:
In Part One of this series, we discussed that Emerging Europe offers huge investment potential for investors, even bigger than what other emerging markets, such as Asia and China, have to offer.
This article will focus on the long-term potential investment opportunities in Emerging Europe, which, according to T. Rowe Price, a Baltimore-based global investment management organization, provides potential alpha generation because of the flexibility of the broad range of investments across the large opportunity set that the region offers.
In its latest study, "Investment Dialogue – Emerging Europe," T. Rowe Price asserted that the financial crisis has shown us how strongly the world becomes correlated with a protracted slowdown and subsequent bear market. The same can be said for the previous bear market during the period between 2000 and 2002, which also demonstrated how world equity markets become inextricably linked in times of global stress.
But historically, Emerging European markets offer the strongest diversification benefits compared with other emerging markets. The study showed that Emerging Europe tended to have much lower correlations to world equities as against their more mature emerging markets counterparts and at the same time ...................... To view our full article Click here
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