September 1, 2012
By Mohamed El-Erian
Having witnessed numerous emerging markets crises over the years, I am continually impressed by how well the majority of these economies – including in Latin America – have navigated the present global economic malaise.
This resilience has helped pull millions of people out of poverty while accelerating a long-term realignment of the global economy. It has also been a source of solid returns in the fixed-income markets, especially for investors starving for income in today’s ultra-low interest rate world.
But with Europe’s lingering crisis, America’s sluggish economy, and slowing growth in emerging economies, some are understandably questioning the sustainability
Investors must become more discerning if they are to navigate the next stage in the emerging market growth cycle — and still make a return