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Investment Solutions Forum 2019 SG - Exclusive Insights - Johan Jooste

Johan Jooste of Bank of Singapore

Jun 17, 2019

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1. What must be considered when investing in emerging markets?

Video transcript

1. What must be considered when investing in emerging markets?

In emerging markets, as you get to the end of the cycle, this cycle is no different from previous ones. There's a lot of liquidity, and investors can become quite complacent about the opportunities to get in and out fairly easily. As the cycle comes to an end, and things tighten up, it might not be so simple to move your investments in emerging markets, whether in stocks or bonds, or something a little bit less liquid like the private space. Think about liquidity all the time. How are you going to get out of this investment? How is your manager going to move things if you wanted to? And equally, where is your income stream going to come from? That is going to be very important, not for a month or two, possibly a 2020 or 2021 thing. But liquidity and EM, never good friends when the cycle turns.