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Frontier markets

Small markets with thin liquidity and restricted access that sit outside the main emerging-market indices.

How to read the number

A step below emerging: an exchange exists, but turnover is small, and closing a sizeable position moves the price against whoever is leaving.

When the metric lies

Their returns look only loosely related to world markets, and that apparent independence gets read as resilience — it is a by-product of infrequent trades and delayed repricing.

Also known as: frontier market group

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