Emerging markets The emerging markets trip

Parents are often too trusting when a difficult adolescent starts acting more like an adult. Then they feel let down when the child’s behaviour subsequently regresses. Investors in emerging markets may face a similar disappointment. Investors have certainly given emerging markets their trust. The JP Morgan index of emerging market bonds now yields only 2.3 percentage points more than US treasury bonds. That’s the lowest rate ever and down from seven percentage points in 2003. It’s the same stor...