Investors who put money into emerging markets at the start of 2013 have had a miserable time. While shares in developed country markets forged ahead on continuing evidence of economic upturn, emerging markets went into reverse, on what is now a wearisomely familiar set of excuses: disappointment over macro-economic data, volatility (any remotely concerning turn of events world-wide is the trigger for sell-off) and capital repatriation to Western financial markets on expectations that interest rates are likely to rise sooner than expected.
http://tinyurl.com/l2grdzy
-Igor P Purlantov
Investors today face a quandary with emerging markets.
Sentiment towards them is bearish, and has been for some years now,
with far greater faith in developed economies than developing. But at
the same time, there is no denying that emerging markets, with their
high populations and strong demographics, will be the engines of global
growth in years ahead. While investors grapple with the question of when it will make sense to
re-allocate assets to emerging market shares in expectation of a
rebound, there is another way of gaining exposure to developing world
growth rates without having to deal with local, falling stock markets.
http://tinyurl.com/knob7ad