Emerging markets present growth opportunities for those who are looking to diversify their portfolio. Investing in these markets won’t be as costly as putting money in stocks that belong to well-developed nations, and investors can capitalize on this fact.
However, despite the growth that these markets offer, they also come with risks that come from business cycles (the long-term trend of upward and downward movements of GDP). Business cycles of emerging markets tend to be more volatile than the ones used by developed markets. By studying and understanding these cycles, investors should be able to increase their chances of becoming successful in investing in emerging markets.
