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Emerging Markets: Four Reasons for Caution, Not Abstinence
March 25, 2014 at 19:00 PM EDT
In the space of three years, emerging markets have gone from a key strategic asset class, one favored by many investors, to persona non grata. More than $10 billion flowed out of emerging market (EM) exchange traded funds (ETFs) in 2013, and since the start of the year, the outflow has only gotten worse. Political turmoil in Turkey and Ukraine, coupled with devaluation by Argentina, has served to add to investor angst. But while I share investors’ concerns on the near-term outlook for EM assets, I don’t agree with the notion that EM equities have gone from a strategic asset class to one that should be completely shunned. As I write in my new Market Perspectives paper, Emerging Markets: Caution, Not Abstinence, there are four key reasons why EM assets still deserve a place – or at least a diminished place – in most portfolios. 1. Recent EM volatility is [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
In the space of three years, emerging markets have gone from a key strategic asset class, one favored by many investors, to persona non grata. More than $10 billion flowed out of emerging market (EM) exchange traded funds (ETFs) in 2013, and since the start of the year, the outflow has only gotten worse. Political turmoil in Turkey and Ukraine, coupled with devaluation by Argentina, has served to add to investor angst. But while I share investors’ concerns on the near-term outlook for EM assets, I don’t agree with the notion that EM equities have gone from a strategic asset class to one that should be completely shunned. As I write in my new Market Perspectives paper, Emerging Markets: Caution, Not Abstinence, there are four key reasons why EM assets still deserve a place – or at least a diminished place – in most portfolios. 1. Recent EM volatility is [...]
