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Who’s Afraid of an Emerging Markets Meltdown?
By Advisor Perspectives
Capital Markets, Financial Services
Deep declines are usually followed by rebounds that leave emerging market stocks with gains by year end, as the structural tailwinds are driven by steadily expanding middle classes. Meaningful, consistent exposures to the asset class are key to capitalizing on the long-run double-digit returns.
The term “emerging markets” has long seemed a bit off given the volatile behavior of these markets. After climbing 84% from its January 2016 low to its January 2018 peak, the MSCI Emerging Markets Index has dropped around 20% over the last eight months. Should we expect emerging markets to grow into developed markets at some point? Certainly, but over time.
Read more at Advisor Perspectives.