Reasons to be optimistic about emerging markets

In this episode of "Short Briefings on Long Term Thinking," Malcolm Borthwick interviews Charles Plowden about investment opportunities in emerging markets. Charles expresses optimism due to the improving conditions, young populations, and technological adoption in these markets, contrasting them with the developed world's stagnation and legacy issues. He discusses how Baillie Gifford allocates its portfolio to emerging markets based on stock-specific analysis, with current exposure around 20-25%. Charles addresses the perception of risk in these markets, arguing that long-term certainty is often greater than in developed economies, highlighting China and India as potential future world leaders. The conversation also covers Baillie Gifford's decision to open an office in Shanghai to better connect with Chinese companies, and the focus on Asian insurance companies as a key investment area due to the growing wealth and savings culture in Asia. Finally, Charles shares insights on Reliance, an Indian company poised for growth in e-commerce and communications.