Emerging-market stocks rebounded in 2020 even as the COVID-19 pandemic spread globally. As vaccines and other favorable conditions unfold, investors have good reasons to consider EM equities in 2021 while strategically considering their potential risks.
In emerging markets, some industries and countries are in better shape than others. And many businesses have the right qualities to benefit from structural changes now and long after local conditions improve.
China is often seen as a source of low-cost manufacturing. Yet today, many Chinese companies are building world-class brands that are overtaking global competitors at home—and are not fully understood by investors.
Fears of new threats to emerging markets have cooled stock returns after two years of hot performance. But the concerns may be overstated. The long-term risk profile of emerging markets is continuing to improve.
Emerging-market (EM) equities posted a strong recovery in 2017 after several tough years. But it’s not too late to invest. We think there are still good reasons to add or increase EM exposure in 2018.
Millennials are becoming a powerful force in emerging markets (EM). Understanding the social and consumer dynamics of this generation can lead to surprising investment opportunities in diverse sectors.
Equity investors are increasingly focused on short-term results. In an impatient marketplace, investors can discover powerful sources of returns in emerging-market companies that deliver extended growth over several years.
Passive investing strategies continue to attract big money. But think carefully before choosing to track a benchmark in emerging markets (EM). Active managers offer several clear benefits for equity investors in the developing world.
Emerging markets often lag behind developed countries when it comes to technology adoption. But things are changing. Developing-world countries and companies are rapidly becoming Internet trendsetters—especially in online retail and digital payments.
Investors in emerging markets are typically attracted to the return potential in fast-growing countries. But do all emerging countries fit the bill? South Korea and Taiwan warrant special attention.