Hello again.

Ask people in the street what they know about investing in emerging markets, and they'll probably say something like this...

Emerging markets are volatile. They tend to be crisis-prone. And when crisis strikes, it usually spreads.

But having some exposure to emerging markets is important because, over the long term, emerging market shares outperform shares in developed markets.

All those statements sound about right.

But that's because investors have very short memories.

When you actually study the data from 1900 onwards in detail, as Professor Paul Marsh has done, you'll know the truth is rather more complex.

Stand by for four surprising facts about emerging markets.

Surprising fact No. 1

Emerging markets have UNDERPERFORMED developed markets over the long term

Surprising fact No. 2

Emerging markets are only marginally more volatile than developed ones and are becoming increasingly LESS volatile

Surprising fact No. 3

Emerging markets have been LESS crisis-prone than developed markets

Surprising fact No. 4

Developed markets have caused MORE contagion than emerging ones

For more on what we can learn from thousands of years of data from markets across the globe, why not check out this, the Credit Suisse Global Investment Returns Yearbook 2014?

You can download it free of charge from the Publications section of the Credit Suisse website.

Join us next time, we'll be asking Professor Marsh whether, after three years of disappointing returns, emerging markets are still worth investing in.

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