Should you differentiate between core and peripheral emerging markets?

Philip Poole Global head of macro and investment strategy, HSBC Global Asset Management We believe investors need to distinguish between these markets. One key difference between the core emerging market (EM) countries and the more peripheral ‘new frontier' markets is liquidity. The core markets generally have higher market turnover and stocks with bigger market caps. It can take considerable time for institutional investors to build decent sized positions in these markets and when there is a correction it may be difficult to reduce. For this reason, investment in more peripheral m...