Any investor in emerging market bonds or stocks, unless he or she is a dedicated portfolio manager with a mandate to outperform an EM index on a short term basis (1-3 years), should operate under the following assumptions.
1. “Buy-and-hold” does not work in EM.
2. Risk always trumps valuation in EM stocks and bonds.
3. EM stocks are liquidity-driven trending assets.
4. The U.S. dollar drives returns and is negatively correlated to EM stocks and bonds. READ MORE
Similar Posts:
- What’s the Right Exposure to Emerging Market Stocks? (USA Today)
- Why Emerging Markets Are Up to the Stress Test (FP)
- Why Now Might be a Good Time for Risk-Tolerant Investors to Buy Into Emerging Markets (Globe and Mail)
- What Hong Kong Dollar Bond Exposure Means to Investors (The Asset)
- Margetts Fund Management Manager: Emerging Markets Rally Has Gone Too Far (FE Trustnet)
- Prudent Ways to Invest in Frontier Markets (WSJ)
- EM Fund Stock Picks & Country Commentaries (October 3, 2023)
- The Case for Dedicated China Exposure (Cambridge Associates)
- DoubleLine’s Gundlach: Short the S&P, Go Long on Emerging Markets
- Chinese Stocks: Cheap Long-term Play or Value Trap? (FE Trustnet)
- Fund Managers’ Opinions on the UAE and Qatar’s Emerging Markets Upgrade (The National)
- Leave Emerging Markets to the Fund Manager Pros (Investors Chronicle)
- Artemis’ Edelsten: Emerging Markets are Expensive With the Exception of China (What Investment)
- Three Keys to a New South Africa (Project Syndicate)
- Opportunities in Emerging Markets Small-Cap Investing (American Century Investments)