Investment Strategies in Turbulent Times: A Comparative Analysis of Developed and Emerging Markets

• Published in: International Trade Journal
• Main Author: Abdullah A.M.; Tuyon J.; Abdullah M.; Keliwon K.B.; Abdullah H.
• Format: Article
• Language: English
• Published: Routledge 2025
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85215266982&doi=10.1080%2f08853908.2025.2453137&partnerID=40&md5=7e04f6ac970aa9da0f84ba39840e7ef9

This study examines portfolio diversification between emerging (China, Malaysia, the Philippines, and Thailand) and developed markets (the USA, UK, Singapore, Hong Kong, and Australia) from January 2006 to August 2022 using MGARCH-DCC analysis. Malaysia’s stock index shows low volatility but a declining trend. The USA index offers the lowest volatility and correlation, making it ideal for diversification with Asian markets. The Philippine index also provides diversification benefits. However, China’s and Thailand’s indices pose risks due to high volatility. Correlations spiked during the 2007 subprime crisis but later stabilized. The findings guide investors on diversification strategies and highlight caution with volatile markets. © 2025 Taylor & Francis Group, LLC.