IMF, a 30% fall in the American stockmarket, combined with a 15% fall in other rich-country stockmarkets, would mean a further 1% reduction in emerging-market growth in each of the next five years, as world trade slowed.
Much like small-cap stocks (which suffer from a lack of brand name, too), emerging market and foreign developed country stocks can give your portfolio the extra gas it needs.
Investors in emerging-market bonds came to a similar view, acting as if the risks posed by a bond issued by developing-country governments were barely higher than that posed by an American Treasury bond (see article).