The equity rollercoaster

INVESTMENT TRUSTS

BlackRock's Sam Vecht says the investment case for Eastern European equities is compelling

What a rollercoaster! After the turmoil of 2008, Eastern Europe markets recovered sharply last year with the MSCI 10-40 Emerging Markets Europe Index showing record returns, up 130.9% over the year. This was after the market bottomed out in March 2009, when as fears of a global recession began to recede. Even then, as global markets recovered and foreign investors returned to emerging markets, inflows into the region lagged behind Asia and Latin America. This was in part driven by fears the economic instability seen in the Baltic States would spread across Central Europe. The weakness in...