MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Gundlach, Goldman Sound Warning On Emerging-Market Stock Rally

TedTed
in Fund Discussions
FYI: Plenty of things could upend the two-year rally in emerging-market equities. Yet no one seems to agree on just what they are.

Sure, the bulls abound. Fiera Capital Corp., the Montreal money manager that oversees $123 billion, expects attractive returns for several more years. Research Affiliates, a sub-adviser to such firms as Pacific Investment Management Co., calls emerging markets the " trade of a decade."

Yet contrarians are sounding the alarm, with Morgan Stanley the latest, saying that emerging equities may see a repeat of the year 2000, which began well and ended with a 32 percent drop. Here are five potential causes for concern:
Regards,
Ted
https://www.fa-mag.com/news/gundlach--goldman-sound-warning-on-emerging-market-stock-rally-36653.html?print

Comments

  • BobCBobC
    As with all investing, EM should be in portfolios "in moderation", recognizing the higher risk associated with owning these stocks. There are always potential causes for concern, no matter what the asset class. Goldman's commentary has as much to do with their reduction of EM stocks in their own models as anything. The five potential concerns are ALWAYS a concern for EM investors.
  • jaba
    Ted said:

    Morgan Stanley the latest, saying that emerging equities may see a repeat of the year 2000, which began well and ended with a 32 percent drop.

    I hope we do see a repeat of it. Because after that, from 2001-2007, EM returned >20%/year.
Sign In or Register to comment.