With a focus on fundamentals, there are abundant opportunities for experienced investors within emerging markets. Read more...
Corporate earnings in emerging markets are showing signs of improvement. The recovery in their economies and currencies has helped, but, encouragingly, we are also beginning to see management teams focus more on improving their margins.
Despite an improvement in markets year-to-date, valuation levels are still broadly supportive in emerging markets. Relative valuations are trading at a significant discount to developed markets, certainly on a price-to-book basis. Valuations on a price-to-earnings basis are more varied.
China remains a significant influence on the rest of the emerging world. Two key concerns with China are the currency and the amount of debt in the financial system.
There continues to be great dispersion of returns among emerging countries. However, with a focus on fundamentals, there are abundant opportunities for experienced investors.