Are Emerging Markets So Bad They’re Good?

Already battered emerging markets stocks and currencies may face the specter of further outflows, but some analysts are tipping they've become the Mystery Science Theater 3000 of assets: So bad they're good.  In emerging markets, "you don't have earnings growth, ROEs (return on equity) are continuing to decay (and) forex volatility is against you. It's not the best of pictures," Bhaskar Laxminarayan, Pictet Wealth Management chief investment officer for Asia, said at a press conference last week.

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U.S. Rate Hikes Could Hurt Emerging Markets

Emerging markets are at risk of negative fallout from an eventual rise in U.S. interest rates despite more settled conditions in financial markets in the fourth quarter, the Bank for International Settlements said Sunday.  "The calm has been uneasy," said BIS economics department head Claudio Borio. "Very much in evidence, once more, has been the perennial contrast between the hectic rhythm of markets and the slow motion of the deeper economic forces that really matter."

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