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Emerging Markets: A Useful Fiction?

They don't act as a group, but that may not matter.

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Do emerging markets actually exist?

It goes without saying that some countries are less developed than others, in that they have much lower standards of living and more widespread health concerns than the most "advanced" countries. But the phrase “emerging markets” is generally used in an investment sense and is not referring to overall development, which is a different matter. (For example, certain Persian Gulf states are wealthy by most economic measures, but with few publicly traded companies and limited trading volume, they qualify as emerging markets in a stock-market sense.)

Gregg Wolper does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.