False Fears and Opportunities in Emerging Markets
Topic: Emerging Markets, 11/13/2015
Emerging Markets (EM) have experienced a prolonged downturn since the latter half of 2014. The financial media has exacerbated the situation by painting a dreary portrait of EM and propagating false fears. However, EM still provide an array of investing opportunities which can provide alpha and diversification to a global portoflio. Due to EM's recent underperformance, now may be an attractive time to invest in EM--albeit on a selective basis. To capitalize on the current investment opportunities, a top-down investment process is integral.
US Rate Hike Impact on Emerging Markets
Topic: Emerging Markets, 8/6/2015
A US Federal Reserve fed-funds rate hike does not inevitably spell trouble for Emerging Markets (EM) equities. Performance after US rate hikes is mixed, implying no established relationship. Today, EM countries are in a financially stronger position than they were throughout the 1990s and early 2000s. Fewer currency pegs and greater foreign exchange (forex) reserves allow for flexibility to deal with internal and external market-related problems. Because equity markets are efficient discounters of all widely known information, much-discussed fed-funds rate hikes lack the surprise power to derail EM equities.
Diversifying in Emerging Markets
Topic: Emerging Markets, 5/29/2015
As opposed to the 1990s and early 2000s, Emerging Markets (EM) can no longer be seen as a bloc. Individual countries must be evaluated based on their unique political and economic situations. A properly managed EM strategy requires attention to macro factors such as changes in monetary policy, elections and currency fluctuations.