You can characterize the past year as anything but stable for the economies of emerging Europe. These include Russia, Ukraine, Poland, Croatia, and Turkey.
At Market Realist, we’ve been following the Russia-Ukraine tensions closely and analyzing their impact on your investments in exchange-traded funds.
The fact that volatility levels remain as low as they are today suggests that the market hasn’t factored in the possibility of geopolitical risks picking up.
A weakened water supply in Latin America has been squeezing 2014 earnings for AES. Management expects a negative impact of $0.1 per share in the full-year earnings.
Emerging market debt is still a volatile asset class when compared to more traditional fixed income investments. As such, allocations to this asset class will largely be a function of an investor’s individual risk appetite.
Sometimes terrible things happen, and it’s not exactly clear when they’re going to happen. So you just have to think: Is the market priced for perfection? Is there some cushion in prices if an exogenous event occurs out of the blue?