Stuart Tyler, senior investment analyst for Lincoln, says that while investors expect higher volatility in emerging markets, corrections like those seen recently reduce the tolerance for risk short-term - but now is not the time to ignore long-term fundamentals.
Far East markets have not been immune from the global correction in equity prices and have seen some dramatic re-pricing this year. Rising inflation, fuelled by oil and food prices, has replaced the credit crunch as the main source of woe for investors, and is giving policy makers in Asia the same sleepless nights. With the long-term attractions of the Far East still robust, the next six months is likely to see investors looking for an opportunity to buy-in at prices they had not expected to see against the region's strong growth potential. The short-term volatility of the equity market...
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