Neptune's Dowey: EMs will never repeat noughties outperformance

Called the era a 'bubble'

Neptune's CIO and chief economist James Dowey has said emerging markets are unlikely to repeat the outperformance seen in the noughties, but the group has begun adding to the sector as risks have started to dissipate.

He said the period between 2000 and 2010 should be considered as an emerging markets bubble as the sector "completely blew the lights out". "The West was stumbling headlong out of the tech bubble and straight into the subprime crisis which only accentuated the sense it was right to be in emerging markets," he added. "But it is inconceivable that we return to the types of outperformance we saw during that decade." More recently, emerging markets have proven vulnerable to a tightening in monetary policy by major developed economies and the slowdown in China. But the economist said Ne...