Emerging Markets

International

Definition

Developing economies with rapid growth potential but higher volatility and risk, characterized by improving infrastructure, increasing market capitalization, and growing integration with global financial systems.

Key Points

Higher growth potential than developed markets
Increased volatility and political risk
Currency fluctuations add complexity

Examples

China, India, Brazil as major EM markets

EM stocks often outperform in risk-on environments

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International Correlation

The degree to which different country stock markets move together, important for...

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