EM fundamentals strong despite Arab Spring

ON EMERGING MARKETS

Lazard's Peter Gillespie explains why he is positive about the outlook for emerging markets despite the wave of recent headwinds.

Concerns have arisen in the developing world on account of the Arab Spring. However, as growth investors, we still see attractive opportunities for earnings per share growth in the market. Much of the recent underperformance in EMs has been due to outside factors, such as global growth and the eurozone debt crisis. However, emerging still underperformed industrialised markets earlier in the year, so there are other factors at work here. It is worth noting inflows into the market were substantial in 2010, so some poor performance can be attributed to some of this capital leaving the as...