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Why Play Defense in Rising Emerging Markets?
By Advisor Perspectives
Why should emerging-market investors exercise caution in a rising market? With big unresolved challenges, we think it’s prudent to target companies with solid fundamentals and stable business models to overcome macroeconomic uncertainty and build a resilient portfolio for the long-term.
Emerging-market stocks have bounced back in 2019. After dropping more than 14% in 2018, the MSCI Emerging Markets Index was up 12.2% through the end of April. And then Aafter falling more than 4% in early May, many investors are trying to determine whether the upward trend will continueresume. However, instead of trying to predict the market’s next move, we think investors should look for the companies with the best chance of beating the 8.4% annual returns that the MSCI Emerging Markets has achieved on average over the past 20 years.
Read more at Advisor Perspectives.
Photo: sung ming whang