Andy Merricks, the head of investments at UK based Skerritts Consultants Ltd, is staying away from emerging markets in his client portfolios for a couple of reasons:
“Our lack of exposure to the emerging markets hurt our performance in the middle of last year, but we were glad that we stayed out by the time the year ended… A strong dollar is rarely a good thing for emerging markets, so if we’re right about the dollar we’ll be right about emerging markets. The correlation between emerging markets performance and that of resources is extremely strong, and we don’t see any rebound in the resources sector soon… The geo-political risk in some emerging markets is also rising and our thoughts are that it will get worse before it gets better in the emerging markets sector.”
To read the whole article, Ricketts: Emerging market and Asia funds can keep rallying, go to the website of FE Trustnet.
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