Long-term growth expected despite continued volatility

Emerging market equity investors have experienced a volatile journey in 2006. In the early months of the year, markets continued to rally strongly as oil and commodity prices rose further. However, a significant correction followed in May as investors fled from risky assets on concerns that higher interest rates would lead to slower global growth. Over the summer confidence returned and markets have risen close to previous highs. A number of issues cloud the skyline in the short term. Interest rates have increased globally and high commodity and oil prices have pushed up inflation. A glob...