3 Ways to Structure an Emerging Markets Portfolio (Barron’s)
Barron’s recently summarized the emerging market investing strategy of Barclays global equity strategists Keith Parker and Andrew Abramczyk as the following:
- Buy Emerging Market Europe. Equities markets in Czech, Russia, Hungary and to a lesser extent Poland are very cheap and yet they have lower external vulnerabilities and higher PMIs. Turkey has considerable domestic risks, but equity valuations are very low.
- Reduce exposure to commodity exporters. South Africa, Indonesia, Brazil and Colombia are no longer cheap and would be at risk if the macro backdrop shifts.
- Tilt exposure toward lower risk Asia (ex India and China). Malaysia, Taiwan, Thailand and Korea have lower external risk scores and lower equity valuations.
It was also noted that many currencies are weak relative to their own history. These currencies include the Malaysian ringgit, the Mexican peso, Turkish lira, Polish zloty, Hungarian forint, the Colombian peso, the Romanian leu and South Africa rand.
To read the whole article, 3 Ways To Structure An Emerging Markets Portfolio, go to the website of Barron’s.
- South Africa’s Economic and Potential Downgrade Woes (Bloomberg)
- Is This Divergence an Emerging Market Warning Sign? (BCA Research)
- South Africa Stocks “Expensive Within Emerging Markets” (Moneyweb.co.za)
- Deutsche Bank: Emerging Market Rally is a False Dawn (Barron’s)
- Exchange Rate Predictability in Emerging Markets (Amundi AM)
- Emerging Market Stocks Enter a Correction (Bloomberg)
- Income Ideas From Emerging Markets (Institutional Investor)
- Nomura’s Morden: Argentina Faces Risks From the Duration of Brazil Contagion (Barron’s)
- JP Morgan’s Gartside: Currencies Now Bear the Blunt of Political Risk
- Frontier Markets: Attractive Valuations with Limited Correlation (Mobius Blog)