December 14, 2018
Subject | 2019 Investment Outlook Series | Active management | Institutional | Macro views
- Emerging Markets (EM) face high uncertainty due to US equity market volatility and trade wars.
- Yet we believe EMs as an asset class looks attractive as they are quite undervalued.
- Quality has been out of favor in the EM markets in 2018, but we anticipate a reverse to the mean in the near future.
Emerging markets are one of the few asset classes where informational inefficiencies provide a fertile ground for bottom-up stock pickers (i.e., active investors) to add value. In our opinion, demographics, technology, decreased reliance on commodities and globalization all provide visible long-term growth potential.Leave a comment