Emerging markets - Sub-prime fallout gets shrugged off

Despite problems brought on by the sub-prime crisis, emerging markets registered a gain of 40% in 2007, bringing emerging markets returns for the last five-year period close to 400% in US dollar terms. Last year, most stockmarkets were supported by a robust macroeconomic environment, surging money supply, rising commodity prices, stronger emerging market currencies, improved corporate earnings and significant fund inflows. Investors remained nervous due to widespread concerns over the impact on the global economy of the credit crisis in the US. This uncertainty is expected to continue i...