Risk differences between an investment in an emerging market and one in a developed market.
Let’s start reviewing the characteristics and differences between an investment in an emerging market and one in a developed market. Today, we will look at this topic in terms of risk of losses. This is an easy win for the developed markets clearly. There is in fact no doubt that investing in a developed market like the US one involved less risks than investing in an emerging or frontier market. There are a multitude of reasons that can explain this but let's focus on the two