May 2004 Contributed by the Batten Institute at the Darden Graduate School of Business Administration
With increased awareness of globalization of world economies, the importance of emerging markets within that globalization process is a prominent and important focal point. Emerging market importance is aptly demonstrated by the undeniable economic impact of the many emerging market economies. These conference speakers emphasize issues relevant to investors in emerging markets. Will Goetzmann places emerging market investing into an historical context. He demonstrates that capital flows from emerging markets have been the defining feature of the world economy for the past 120 years.
C. Hayes Miller discusses the importance of event risk in emerging market investing. He notes that emerging markets are particularly vulnerable to event risk, which is notoriously difficult to forecast. He offers ten potential such events to watch out for in the near term.
Andrew Rudd provides an analysis of the factors most important in international investing – country versus industry factors. He examines the body of recent research which observe an increase in the relative importance of industry selection while concluding that country selection remains the dominant factor in emerging market investing.
These sessions were presented by the Batten Institute at the Darden Graduate Business School in partnership with Emerging Markets Review, Financial Management Association International, the Research Foundation of the Association for Investment Management and Research, and State Street Corporation.