There are political risks even in the most developed markets. Indeed, if you are willing to brave the potential dangers of emerging markets, then the traditional attraction is still there. If you have the appetite for it, if you're not too conservative, there has never been a better time to be in emerging markets than now. And the good news is, the risks and disadvantages associated with emerging markets have been diminishing. Inflation is coming down or is in check in most countries.
Economic reforms are the order of the day.
Moreover, political stability is coming to many countries that have traditionally not known it. Delivery of securities and settlement problems are very real issues, and they are often the biggest single obstacle in the development of emerging capital markets. But you have to look at the great strides made in building systems that are accurate and timely. Part of the reason for the improvements is increasing global participation. Foreign investors are not going to stand by and keep buying stocks while they are being raped by managers and owners of companies in emerging markets who do things by their own rules.