ASEAN: 5 Reasons for Optimism in a Post Covid-19 World
The ASEAN region, comprised of a diverse group of ten countries in Southeast Asia, is a dynamic bloc of over 650 million people and is on track to become the fourth-largest economy in the world.1 Covid-19 disrupted global economies and ASEAN was no exception, but the pandemic also accelerated trends that we believe will help expedite the region’s recovery. These trends include advancing ASEAN as a major manufacturing hub, attracting high levels of foreign investments, and embracing digital technology to drive growth.
1 World Economic Forum, Davos Agenda 2022
Investment Considerations — There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential of loss of principal.
Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, political, legal and economic structures in these country may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than U.S. investments.