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September 27, 2006

All Business: Emerging markets: new reminders of their risks

  • Proceed with caution when plunging money into white-hot emerging markets because just a bit of unrest can certainly shake things up.
    • By RACHEL BECK
    AP Business Writer

    NEW YORK — When investors size up emerging markets, booming economic growth often trumps underlying political risk. Instead, they should be thinking the opposite way.

    Look at how political instability has rocked parts of the developing world in recent weeks. In countries including in Thailand, Poland, Hungary and Ecuador, seemingly stable financial markets suddenly sold off.


     
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