(Nothing I write is to be construed as a recommendation to buy or sell. This blog is intended for informational use only. I give full credit to Krishna Momani, Chief Investment Officer of the Oppenheimer Funds, for the information in this blog).
If you missed Part One of this blog, may I encourage you to read it before Part Two?
As you will see in the following chart, growth rates in many of the largest emerging market economies have stabilized and are now trending higher, commodity prices have bottomed, and currencies have steadied, bringing inflationary pressures under control.
Next, as you will see in the following chart, China is successfully transitioning from a manufacturing economy to a service-oriented economy.
The cyclical emerging market economic backdrop combined with still-relatively cheap valuations suggest that emerging market equities are poised to outperform the developed world over the next market cycle.
If you have questions or interest in learning more, I’d love to share a conversation with you!
Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Source of charts: OppenheimerFunds, “The Case for Emerging Markets”, Krishna Memani, CIO
Disclosure: These views represent the opinions of OppenheimerFunds, Inc. and are not intended as advice or to predict or depict the performance of any investment. These views are as of the close of business on March 31, 2017, and are subject to change based on subsequent developments. Equities are subject to market risk and volatility; they may gain or lose value. Fixed-income investing entails credit and interest rate risks. Bonds are exposed to credit and interest rate risk. When interest rates rise, bond prices generally fall, and a fund’s share prices can fall. Investments in securities of growth companies may be especially volatile. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes and geopolitical risks. Emerging and developing markets may be especially volatile. Eurozone investments may be subject to volatility and liquidity issues. The mention of specific countries, regions, or sectors does not constitute a recommendation by any particular fund or by OppenheimerFunds, Inc.
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