Investing in Emerging Markets Still Holds Promise

Emerging markets have been hit hard in recent years, but investors should consider their long runway for potential growth.

city skyline of emerging markets financial district
(Image credit: Getty Images)

Most investors today worry about inflation and the response to it from the Federal Reserve, but it's time for a longer view. If you're buying stocks for gains over the next 10 years or more, you need to imagine the contours of the future. 

A July report from the United Nations gives a hint. Researchers estimate that practically all population gains through 2050 will occur in emerging markets – especially India, which will become number one next year, surpassing China. Nigeria will be third, tied with the United States. Other nations whose population will grow at a good clip are Indonesia, Brazil, Pakistan and Bangladesh. 

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James K. Glassman
Contributing Columnist, Kiplinger's Personal Finance
James K. Glassman is a visiting fellow at the American Enterprise Institute. His most recent book is Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence.