« A Look at the Long-Term | Main | Best Credit Card Ever »

Since the second week of May, emerging markets are down 16%. The Economist takes a closer look:

Emerging economies have been strikingly successful in raising equity finance in the form of foreign direct investment, which accounted for almost half of the private capital they imported in 2005. They have also attracted the attentions of private-equity firms in recent years. But their record in wooing portfolio investors, who want to buy shares not companies, has been patchy. Foreign punters flirted with local stockmarkets in the year before the Asian financial crisis, for example, but were then embarrassed by the losses they incurred. As one money manager put it, "We did not go very deep, and we did not stay very long."

Posted by edelfenbein at June 11, 2006 7:23 AM