The Big Question: What are the biggest opportunities and risks for your strategy as we head into the second half of the year? (Part II)

Sam Vecht, portfolio manager, global emerging markets team, BlackRock Earnings recovery  Emerging market equities have had a lost decade. It was not due to lack of economic growth or investment opportunities and neither to lack of reforms. As is often the case, emerging market companies mis-allocated capital which depressed corporate profits and hence market performance. The mystery that is European earnings We are, however, noting a meaningful improvement on that front. Better CAPEX discipline has improved company cashflows across emerging markets and coupled with a normalizat...