Portfolio Discussions: Emerging markets - J.P. Morgan Asset Management
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Portfolio Discussions: Emerging markets

Emerging markets

Insights

Disclosure

Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops.

International investing bears greater risk due to social, economic, regulatory and political instability in countries in "emerging markets." This makes emerging market securities more volatile and less liquid developed market securities.

Changes in exchange rates and differences in accounting and taxation policies outside the U.S. can also affect returns.

The prices of equity securities are sensitive to a wide range of factors, from economic to company-specific news, and can fluctuate rapidly and unpredictably, causing an investment to decrease in value.

Diversification does not guarantee investment returns and does not eliminate the risk of loss. Diversification among investment options and asset classes may help to reduce overall volatility.