The sell-off in emerging markets during 2018 is presenting investors with an opportunity to buy EMs at low valuations, according to investors, although trade war threats between China and President Trump will continue to be a blot on the horizon going into 2019.
The asset class as a whole suffered dramatic falls in 2018, particularly in Turkey and frontier market Argentina. Over one year to 31 December, MSCI Turkey lost 43% while MSCI Argentina fell by 52% after political and currency difficulties, causing the overall MSCI Emerging Markets index to fall 16% in dollar terms, closing at 965.667 on 31 December. According to Investec, emerging market equities are now trading on a 30% discount to developed market equities. EMs fall into bear market territory as Turkey crisis, commdities and Tencent bite Nick Price, manager of the Fidelity Em...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
