Are Emerging Markets Re-emerging?

Emerging market stocks have started to outperform developed market equities. We believe that investors should maintain a long-term overweight in EM stocks, but need to be prepared for significant volatility and focus on being selective in their country and company selection. Last summer emerging markets, both stocks and bonds, had the distinction of being the most unloved asset class. Since then, markets have calmed down. Emerging market stocks are up around 9% since last summer, and have narrowly outperformed their developed market counterparts. Has the luster returned for EM? As is often the case with EM, the story is nuanced. Here are four things to keep in mind: 1) Headwinds remain. These include slowing growth in China and India, inflation in Turkey and India, and the looming uncertainty of how these markets will perform once the Fed finally begins to taper. 2) Be prepared for volatility. Despite the outperformance, as [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts