Gary Gordon for the Street points out this simple fact: emerging market citizens spend a larger percentage of the disposable income on food and energy than those who live in developed countries. Despite that, however, the quickly-rising costs of food haven’t hurt emerging market stock markets as much as many thought they would. [Sentiment Changes Toward Emerging Markets ETFs.]
The performance of many countries in the wake of the recession should have taught us this: emerging markets are resilient and capable of recovering at a rate that can surprise even the most hardened skeptic.
Could we still see flat performance and investor exodus? Yes, but the long-term growth story of emerging markets hasn’t ended.
Tisha Guerrero contributed to this article.