Market in Istanbul: Turkey is an example of the problems of the emerging countries.
Image: Reuters
Caution should be exercised when investing in emerging markets. After the corona pandemic and the Ukraine war, there are winners and losers. Commodity exporters benefit while importers face tough times.
Dhe emerging countries, i.e. the countries with high catching-up and growth potential, have never been a homogeneous asset class, even if the numerous fund products sold with an emerging markets focus suggest otherwise. After the corona pandemic and the Ukraine war, the emerging markets split into winners, usually commodity exporters, and losers, commodity importers. Nonetheless, Nick Eisinger, portfolio manager and co-head of emerging markets at American fund company Vanguard, believes that emerging markets, which include countries as diverse as China, Turkey and Brazil, are a challenging and at the same time interesting asset class.
“The market regularly has to reassess every few years. This is also due to the political risks in these countries,” he says in an interview with the FAZ. Bernhard Matthes, portfolio manager in asset management at the Bank for Church and Caritas (BKC), speaks of immense heterogeneity. “While commodity importers face tough times, exporters are benefiting. This applies not only to oil, but also to food.” In an interview with the FAZ, Matthes recalls the Arab Spring, which was ultimately triggered by a rise in food prices.