Country-specific Risk |
| The risk inherent in holding shares, bonds or other securities whose fortunes are closely allied with a particular country. If the country goes into an economic downturn, or its debt is subject to a credit re-rating, or international investor sentiment turns against it, investments may well lose value, even though the underlying fundamentals are unchanged. Generally speaking, sovereign risk, as it is also known, is more of a problem for investors in emerging markets than in developed economies. |
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