JP Morgan Fleming - emerging markets outlook

By Chris Tracey, JP Morgan Fleming Asset Management investment director The global emerging market index rose by 3.4% in January, led by some of the smaller Asian markets and Eastern Europe, where Russian equities continued where they had left off in 2001. The two major European convergence plays, Poland and Hungary, also produced double-digit returns in US dollars. The continued outperformance of emerging markets as a whole reflects the fact that the valuation discount of the latter remains, by historic standards, extraordinarily high and therefore the valuation risk is...