Investing in Emerging Markets: Short-Term Risks Outweigh Long-Term Gains.
The article breaks down how different risks affect investments in emerging economies. By studying stock indices from Latin America and Asia, the researchers found that short-term losses are higher than long-term ones. They also discovered that certain stock markets are more connected to each other than to developed countries. Additionally, the level of risk changes depending on how long you plan to invest and which stock indices you choose to invest in. These findings align with recent research on how different investors impact asset pricing.