Are you taking a gamble by underinvesting in emerging markets?

Emerging markets are by no means a safe haven, but the problems these countries face are minor in comparison to those of the more developed world, writes Jerome Booth, head of research at Ashmore Investment Management Limited.

Emerging markets (by which I mean the full range of asset classes: money markets, government and corporate debt, equities, and alternatives) are arguably safer than their developed market equivalents, especially when we think of the risks we should be most concerned about  the really big ones. This is not to say that they are a safe haven; rather the concept of there being any safe haven investment destination is fundamentally flawed. It is the denial of risk in developed countries for so long that has led to inherited distorted investment allocations, and major US and EU macroeconomi...