A storming year for emerging markets

The case for investing in emerging market equities as part of a diversified global portfolio remains compelling

Towards the end of 2008, with the world seemingly teetering on the brink of a 1930s-style depression, not even the most optimistic of investment commentators would have dared predict the recovery enjoyed by global equity markets since early March. However, that was before central banks had slashed interest rates to record lows and deployed quantitative easing to combat the threat of deflation. Stock markets around the world duly rocketed, with the S&P 500 and FTSE All Share indices both surging by more than 55% from their low-points to end the year some 25% above their start year levels. Bu...