RT Journal Article
SR Electronic
T1 Countries Versus Industries in Emerging Markets
JF The Journal of Investing
FD Institutional Investor Journals
SP 19
OP 28
DO 10.3905/joi.2006.669090
VO 15
IS 4
A1 Javier Estrada
A1 Mark Kritzman
A1 Sébastien Page
YR 2006
UL https://pm-research.com/content/15/4/19.abstract
AB Should investors in emerging markets focus on diversifying across countries or diversifying across industries? This question, widely debated in developed markets, and particularly in Europe, has received little attention in emerging markets. Using a normative approach that disentangles the impact of investor behavior from the opportunities offered by capital markets, the authors find that country effects dominate industry effects. It follows from these results that, despite the increasing globalization of emerging markets, investors should focus their diversification efforts on countries rather than on industries.TOPICS: Emerging markets, portfolio construction, portfolio theory